Southwest Bancshares, Inc. Completes Private Placement of $35.0 Million of Subordinated Notes to Support Organic Growth of Subsidiary Texas Partners Bank
Southwest Bancshares, Inc. ("SWB"), a Texas corporation and the holding company for its wholly-owned subsidiary, Texas Partners Bank, San Antonio, Texas (the "Bank"), today announced the issuance of $35.0 million in aggregate principal amount of its fixed-to-floating rate subordinated notes (the "Notes") to certain qualified institutional buyers and institutional accredited investors in a private placement transaction.
"We are very pleased to announce the successful completion of our inaugural subordinated debt offering and pleased with the strong endorsement by our new investors," said J. Bruce Bugg Jr., Chairman, President and CEO of SWB. "Our Bank grew its total assets in 2021 by 34% and we believe this capital will enhance the ability of our Bank to continue powering the exceptional organic growth across San Antonio, Austin and the Texas Hill Country communities we serve in Central Texas."
The Notes have a maturity date of June 15, 2032 and carry a fixed rate of interest of 5.000% for the first five years. Thereafter, the Notes will pay interest at 3-month SOFR plus 255 basis points, resetting quarterly. The Notes include a right of prepayment without penalty on or after June 15, 2027.
SWB intends to use the net proceeds from the offering for general corporate purposes, including the repayment of an existing holding company line of credit in the principal amount of $2.75 million and to support organic growth of the Bank.
Piper Sandler & Co. served as the sole placement agent on the offering. SWB was advised by Fenimore Kay Harrison LLP, and the placement agent was advised by Bracewell LLP.
ABOUT SOUTHWEST BANCSHARES, INC.
Southwest Bancshares, Inc., the bank holding company for Texas Partners Bank, had over $2 billion in assets as of March 31, 2022. Texas Partners Bank operates in its Central Texas markets under the names The Bank of San Antonio, The Bank of Austin and Texas Hill Country Bank. Texas Partners Bank began in 2007 and operates 11 branches in the greater San Antonio, Austin and Texas Hill Country areas. The Bank offers traditional banking products to both business and consumer customers with a focus on business banking. For additional information, please visit the Bank's website at www.texaspartners.bank.
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