First Merchants Corporation Announces Pricing of Subordinated Notes Offering

manilatimes.net · 2026-09-23

MUNCIE, Ind., Sept. 23, 2026 (GLOBE NEWSWIRE) -- First Merchants Corporation (Nasdaq: FRME) (the 'Company”) today announced the pricing of its offering of $100 million of its 6.750% Fixed-to-Floating Rate Subordinated Notes due 2036 (the 'Notes”) in a registered public offering (the 'Offering”). The Notes will initially bear interest at 6.750% per annum from and including September 25, 2026 to, but excluding, October 1, 2031, with interest payable semiannually in arrears commencing on April 1, 2027. Commencing October 1, 2031, the interest rate on the Notes will reset quarterly to a floating rate per annum equal to a benchmark rate that is expected to be Three-Month Term SOFR (which is defined in the Notes) plus 202 basis points, with interest payable quarterly in arrears.

TickrTrends take: First Merchants Corporation's announcement of a subordinated notes offering reflects the company's capital management strategy within the financial services sector. Given TickrTrends' assessment that BFC is currently fairly valued, investors should monitor how this debt issuance affects the company's capital structure and leverage ratios, as changes to these metrics could influence the valuation outlook going forward. The pricing and terms of subordinated debt can signal management's view on future earnings power and may have implications for dividend capacity and financial flexibility.

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