Horizon Bancorp Bolsters Financial Position with $100 Million Offering
Michigan City, Friday, 29 August 2025.
Horizon Bancorp, Inc. successfully issued $100 million in subordinated notes to enhance capital structure and liquidity. This strategic move indicates a confident growth outlook amidst market fluctuations.
Details of the Subordinated Notes Offering
Horizon Bancorp, Inc. (NASDAQ: HBNC) announced on 29 August 2025 the completion of a $100 million subordinated notes offering. The notes, listed as 7.00% Fixed-to-Floating Rate Subordinated Notes, are due in 2035. Initially, they will bear a fixed interest rate of 7.00% per annum until 15 September 2030. Following this initial period, the interest rate will reset quarterly to a floating rate that is calculated by adding 360 basis points to the three-month Secured Overnight Financing Rate (SOFR) [1].
Strategic Utilization of Proceeds
Horizon Bancorp plans to utilize the proceeds from this incentivizing financial move for general corporate purposes. The allocation of these funds will also include the potential repositioning of its balance sheet—a bid to bolster the company’s resilience amidst today’s fast-shifting market tides. Additionally, the company aims to use part of the proceeds to redeem approximately $56.5 million in aggregate principal of previously issued 5.625% Fixed-to-Floating Rate Subordinated Notes due in 2030, which may yield further financial stability for the entity [1].
Enhancing Competitive Edge
The issuance of these notes is structured to qualify as Tier 2 capital, supporting Horizon’s regulatory capital requirements and financial robustness. By strengthening its capital structure and reinforcing liquidity, Horizon Bancorp enhances its competitive stance in the banking sector. The completion of this offering underscores the company’s strategic financial management and provides a more secure footing to seize future growth opportunities [1].
Placement and Legal Representation
The transaction was facilitated with the support of Performance Trust Capital Partners, LLC and Keefe, Bruyette & Woods, a Stifel Company, who served as joint placement agents. Alston & Bird LLP represented the agents, while Warner Norcross + Judd LLP acted as legal counsel to Horizon [1]. This collaboration ensured a smooth process for the offering, underlining the importance of expert guidance in executing financial strategies of this magnitude.