Sterling Bancorp in Montebello, N.Y., plans to raise $105 million in a debt sale to fuel potential acquisitions of commercial lenders.
The $12 billion-asset holding company for Sterling National Bank will offer $105 million in 5.25% fixed- to floating-rate subordinated notes due 2026. The notes are subordinated to its existing and future debt.
The notes will bear a fixed rate of 5.25%, payable semiannually on April 1 and Oct. 1 each year, beginning this October until April 2021. After that they will carry an annual floating rate equal to the three-month Libor plus 3.937%. When the notes move to the floating rate they will pay in January, April, July and October.
The notes are set to mature on April 1, 2026. For regulatory purposes they qualify as Tier 2 capital.