ST. LOUIS, Mo.–(BUSINESS WIRE)–Enterprise Financial Services Corp (Nasdaq: EFSC) (the “Company”), the holding company of Enterprise Bank & Trust (the “Bank”), today announced the pricing of its public offering of $55.0 million aggregate principal amount of 5.75% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The price to the public is 100% of the principal amount of the Notes. Interest on the Notes initially will accrue at a rate equal to 5.75% per annum from and including May 21, 2020 to, but excluding, June 1, 2025, payable semi-annually in arrears. From and including June 1, 2025 to, but excluding, June 1, 2030 or the earlier redemption date, interest will accrue at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Notes), plus a spread of 566.0 basis points, payable quarterly in arrears. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.
The offering is expected to close on May 21, 2020, subject to the satisfaction of customary closing conditions. In connection with the offering, the Company has granted the underwriters an option for 30 days to purchase up to an additional $8.25 million aggregate principal amount of Notes.
Piper Sandler & Co. is acting as the book-running manager and U.S. Bancorp Investments, Inc. is acting as co-manager for the offering.
The Company estimates that the net proceeds of the offering will be approximately $54.2 million, or approximately $62.3 million if the underwriters exercise their overallotment option in full, after deducting underwriting discounts but before offering expenses payable by the Company. The Company intends to use the proceeds for general corporate purposes, which may include repayment or redemption of outstanding indebtedness, the payment of dividends, providing capital to support its organic growth or growth through strategic acquisitions, capital expenditures, financing investments, repurchasing shares of its common stock, and for investments in the Bank as regulatory capital.