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SOUDERTON, Pa. - Univest Financial Corporation (NASDAQ:UVSP) announced Thursday it has closed a $50 million private placement of fixed-to-floating rate subordinated notes with a maturity date of November 15, 2035. The Pennsylvania-based financial institution, with a market capitalization of $836 million, currently trades at an attractive P/E ratio of 9.9x earnings.
The notes will carry a fixed interest rate of 6.00% for the first five years, after which they will convert to a floating rate based on the three-month Secured Overnight Financing Rate plus 261.5 basis points, according to a press release statement.
The Pennsylvania-based financial services company plans to use the proceeds to redeem its outstanding $80 million of callable subordinated notes and for general corporate purposes.
The notes are structured to qualify as Tier 2 capital for regulatory purposes and may be redeemed without penalty on or after November 15, 2030, or earlier under certain specified conditions.
Piper Sandler & Co. served as the sole placement agent for the private offering, with Luse Gorman, PC providing legal counsel to Univest.
Univest has entered into registration rights agreements with the purchasers to provide for the exchange of the notes for subordinated notes registered under the Securities Act of 1933 with substantially the same terms.
The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
Univest Financial Corporation, founded in 1876, operates through its subsidiary Univest Bank and Trust Co. with approximately $8.6 billion in assets and $5.7 billion in assets under management as of September 30, 2025. According to InvestingPro analysis, the company appears undervalued based on its current Fair Value assessment, with a PEG ratio of just 0.49 and an impressive 47-year track record of consistent dividend payments. Analysts expect the company to remain profitable this year with an EPS forecast of $3.13 for 2025.
In other recent news, Univest Financial Corporation reported strong results in its Q3 2025 earnings call. The company achieved earnings per share of $0.89, surpassing analyst expectations of $0.76 by 17.11%. Additionally, Univest’s revenue was $83.25 million, exceeding the anticipated $81.75 million, resulting in a 1.83% surprise. These figures indicate a positive performance for the company in the recent quarter. The earnings results were well-received by investors, reflecting confidence in Univest’s financial health. The company’s ability to outperform both earnings and revenue forecasts highlights its current operational strength. These developments provide a comprehensive look at Univest’s recent financial achievements.
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