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 a sale of fixed subordinated notes in November at $75 million.

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.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.