Pinnacle Financial Partners in Nashville, Tenn., plans to raise $60 million in subordinated debt in a private placement.
The $6.2 billion-asset Pinnacle will use the proceeds for merger-related expenses associated with its proposed acquisitions of the $968 million-asset CapitalMark Bank & Trust in Chattanooga, Tenn., and the $595 million-asset Magna Bank in Memphis, Tenn., and for other general corporate purposes.
Pinnacle will issue notes carrying a fixed rate of 4.875% until July 30, 2020. Then the rate will switch to a floating rate equal to Libor plus 3.128% until 2025. Pinnacle did not identify the institutional investors involved with the debt sale.