Independent Bank in McKinney, Texas, is planning to raise capital by issuing debt.
The $2.4 billion-asset bank will issue $60 million in subordinated notes, it said in a prospectus filed Tuesday with the Securities and Exchange Commission.
Independent Bank intends to use the proceeds to pay the $16.8 million cash portion of its acquisition of the $296 million-asset Houston City Banchsares; the deal was announced last month. The bank will direct the remaining proceeds toward regulatory capital.
Sandler O'Neill and U.S. Bancorp Investments are joint book-runners for the offering. Co-managers for the deal include Evercore Partners; Keefe, Bruyette & Woods; and Sterne Agee & Leach.