LegacyTexas Financial Group in Plano sold $50 million in debt to use for possible acquisitions and other purposes.
The $8 billion-asset company disclosed in a regulatory filing Tuesday that the fixed- to floating-rate subordinated notes were sold starting Sept. 15. The new debt issuance follows
The secondary notes bear an initial 5.5% fixed rate until December 2020, when it will reset quarterly to an annual rate equal to the then-current Libor plus 389 basis points. The notes mature in 2025.
LegacyTexas reached underwriter agreements with J.P. Morgan Securities and Sandler O’Neill to sell the notes to them at a 1.5% discount.
Net proceeds from the offering, before deductions for expenses, are about $48.9 million. The company said it intends to use the proceeds for general corporate purposes, potential strategic acquisitions, investments in its LegacyTexas Bank unit as regulatory capital and to reduce debt.