Farmers to Issue $75M in Notes Through Private Placement
CANFIELD, Ohio — Farmers National Banc Corp announced Friday that it is issuing $75 million in fixed-to-floating rate subordinated notes as part of a private placement except from SEC registration requirements.
The offering is expected to close Nov. 17. The company said it intends to use the net proceeds for general corporate purposes.
According to the announcement, the notes are due 2031. They bear a fixed rate of 3.125% for the first five years and will reset quarterly thereafter to the then current three-month SOFR (secured overnight financing rate) rate plus 220 basis points, the company said.
“We are extremely pleased with the interest that investors have shown in Farmers,” said Kevin J. Helmick, president and CEO of Farmers, in a statement. “The debt provides us a great deal of flexibility with regard to both corporate and capital strategies as we move forward after the acquisition of Cortland Bancorp.”
Farmers acquired Cortland Bancorp in a $124 million cash and stock transaction. The merger took effect Nov. 1.
The company now has $4.1 billion in banking assets. It operates 48 offices in Mahoning, Trumbull, Columbiana, Stark, Summit, Portage, Wayne, Medina, Geauga and Cuyahoga counties in Ohio, and Beaver County in Pennsylvania.
Pictured: Farmers National Banc Corp.headquarters in Canfield, Ohio.
Published by The Business Journal, Youngstown, Ohio.