Cadence Bancorp in Houston has raised $245 million in an oversubscribed debt issuance.
The proceeds will be used to maintain capital levels and develop products and technology that benefit bank customers, Sam Tortorici, the chief executive of Cadence's bank unit, said in a news release Wednesday.
The debt transaction involved four notes issued by two units of the company, and they will be spread out over five to 15 years, the $6.7 billion-asset Cadence said.
There are three sets of holding company notes: a $135 million, five-year senior note at 4.875%, a $50 million, seven-year senior note at 5.375%, and a $35 million, 15-year subordinated note at 7.25%. Furthermore, the bank unit issued a $25 million, 15-year subordinated note at 6.25%.
"Investors were particularly drawn to our core business outlook and long-term strategy as well as our very attractive Texas and Southeastern footprint," Paul Murphy, the chief executive of Cadence Bancorp, said in the release. "We are delighted to have such positive interest in our company."
Cadence's banking unit has more than 95 branches in Florida, Georgia, Alabama, Mississippi, Tennessee and Texas.
U.S. Bancorp Investments and Deutsche Bank Securities served as lead placement agents in the debt issuance.