Farmers National Banc Corp. Completes the Issuance and Sale of $75 Million Aggregate Principal Amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes Due 2031
November 18, 2021 at 02:51 am IST
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On November 17, 2021, Farmers National Banc Corp. (the ?Company?) completed the issuance and sale of $75 million aggregate principal amount of its 3.125% fixed-to-floating rate subordinated notes due 2031 (the ?Notes?) in a private placement (the ?Private Placement?) exempt from the registration requirements under the Securities Act of 1933, as amended (the ?Securities Act?). The Company intends to use the net proceeds from the offering for general corporate purposes. The Private Placement of the Notes was completed pursuant to a Subordinated Note Purchase Agreement dated as of November 17, 2021 (the ?Purchase Agreement?), entered into by the Company with certain ?qualified institutional buyers? as defined in Rule 144A under the Securities Act and/or institutional ?accredited investors? as defined in Rule 501 of Regulation D under the Securities Act. The Purchase Agreement contains customary representations, warranties, covenants and agreements, including the terms and conditions of the issuance and sale of the Notes in the Private Placement, and other terms and conditions customarily contained in agreements of this type. The Notes will initially bear interest at 3.125% per annum, from and including November 17, 2021 to, but excluding, December 15, 2026 or the earlier redemption of the Notes, payable semi-annually in arrears on December 15 and June 15 of each year. From and including December 15, 2026 to, but excluding, the maturity date or the earlier redemption of the Notes, the Notes will bear interest at a rate per annum, reset quarterly, equal to the then current three-month Secured Overnight Financing Rate (SOFR) (provided, however, that in the event three-month SOFR is less than zero, three-month SOFR will be deemed to be zero) plus 220 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year. If three-month SOFR cannot be determined on a given date, a different index will be determined and used in accordance with the terms of the Notes.
Farmers National Banc Corp. is a diversified financial services company. The Company provides full banking services through its nationally chartered subsidiary, The Farmers National Bank of Canfield (Bank). Its segment includes Bank segment and the Trust segment. It provides trust and retirement consulting services through its subsidiary, Farmers Trust Company (Trust), and insurance services through the Bank's subsidiary, Farmers National Insurance, LLC. Farmers National Captive, Inc. (Captive) is a wholly owned insurance subsidiary of the Company that provides property and casualty insurance coverage to the Company and its subsidiaries. It is a full-service national banking association engaged in commercial and retail banking mainly in the northeastern region of Ohio and the western region of Pennsylvania. Its commercial and retail banking services include checking accounts, savings accounts, time deposit accounts, commercial, mortgage and installment loans, and home equity loans.
Farmers National Banc Corp. Completes the Issuance and Sale of $75 Million Aggregate Principal Amount of its 3.125% Fixed-to-Floating Rate Subordinated Notes Due 2031