Fulton Financial in Lancaster, Pa., will issue $150 million in subordinated debt to fund the redemption of a separate portfolio of debt securities.
The $17 billion-asset company will offer $150 million of its existing 4.5% subordinated notes due 2024. The subordinated notes will not be redeemable before they mature and they will qualify as Tier 2 capital.
Fulton will use the proceeds toward its anticipated redemption of 6.29% Junior Subordinated Deferrable Interest Debt Securities due 2036.
Sandler O'Neill & Partners and Keefe, Bruyette & Woods are the offering's joint book-running managers. Sullivan & Cromwell and Barley Snyder are legal counsel.