Simmons First National prices $325 million subordinated notes offering

Published 09/09/2025, 20:38
Simmons First National prices $325 million subordinated notes offering

PINE BLUFF, Ark. - Simmons First National Corporation (NASDAQ:SFNC), a regional bank with a market capitalization of $2.95 billion, announced Tuesday the pricing of its public offering of $325 million in 6.25% Fixed-to-Floating Rate Subordinated Notes due 2035, priced at par. According to InvestingPro data, the company maintains strong financial health metrics with a fair overall score.

The Arkansas-based financial holding company plans to use the net proceeds, combined with cash on hand, to repay its outstanding $330 million principal amount of Fixed-to-Floating Rate Subordinated Notes due 2028, with any remaining funds allocated for general corporate purposes. The company’s solid financial position is reflected in its moderate leverage, with a debt-to-equity ratio of 0.31.

Keefe, Bruyette & Woods, A Stifel Company and Morgan Stanley are serving as joint book-running managers for the offering, while Piper Sandler & Co., Raymond James & Associates, Inc. and Stephens Inc. are acting as co-managers.

The offering is expected to close around September 12, 2025, subject to customary conditions. The notes will be issued under the Subordinated Indenture dated March 26, 2018, as supplemented by a Second Supplemental Indenture between Simmons and Wilmington Trust, National Association as trustee.

The company noted that the notes are not obligations of, and will not be guaranteed by, any of its subsidiaries.

Simmons First National Corporation operates more than 220 branches across Arkansas, Kansas, Missouri, Oklahoma, Tennessee and Texas through its principal subsidiary, Simmons Bank. The company has paid cash dividends to shareholders for 116 consecutive years since its founding in 1903. InvestingPro analysis reveals the company has raised its dividend for 13 consecutive years, currently offering a 4.08% yield. While the company trades at a P/E ratio of 16.03, InvestingPro’s Fair Value analysis suggests the stock is currently trading above its Fair Value. For deeper insights into SFNC’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a press release statement from the company.

In other recent news, Simmons First National Corporation announced a quarterly cash dividend of $0.2125 per share on its Class A common stock, marking a 1% increase from the previous year. Additionally, the company has priced a public offering of 16.22 million shares at $18.50 each, raising approximately $300.07 million. Moody’s Ratings confirmed Simmons First National’s Baa2 long-term local currency issuer rating, with a stable outlook, and affirmed the ratings of its banking subsidiary, Simmons Bank. DA Davidson has raised the price target for Simmons First National to $21 from $19, citing better-than-expected second-quarter results, which included stronger revenue and reduced expenses. The company has also granted underwriters a 30-day option to purchase an additional 2.43 million shares at the same offering price. These developments follow a period of scrutiny from Moody’s, which had previously placed the company’s ratings under review. The dividend is set to be paid on October 1, 2025, to shareholders of record as of September 15, 2025.

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