First Merchants Corp to Redeem $30M in Subordinated Notes

Published 14/02/2025, 22:24
First Merchants Corp to Redeem $30M in Subordinated Notes

MUNCIE, IN - First Merchants Corporation (NASDAQ:FRME), a financial services holding company with a market capitalization of $2.59 billion, announced today that it will redeem all $30 million of its outstanding 4.75% Fixed-to-Floating Subordinated Notes due 2029. The redemption is in accordance with the notes' optional redemption provisions and is scheduled for March 18, 2025, which is the next interest payment date for the notes. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment, with the stock currently trading at $44.61.

The Subordinated Notes were initially issued on December 18, 2019, and the full redemption indicates that no principal amount will remain outstanding after the specified redemption date. This move is part of First Merchants Corporation's financial management strategy, which has helped maintain its strong financial health. InvestingPro data shows the company has maintained dividend payments for 37 consecutive years, with 13 years of consecutive increases, demonstrating consistent financial stability.

This announcement, made through a formal notification process by the company's trustee, is in line with regulatory requirements and reflects the company's adherence to its financial obligations and commitments to note holders.

First Merchants Corporation, with headquarters in Muncie, Indiana, operates under the SIC National Commercial Banks category and is incorporated in the state of Indiana. The company's common stock and depositary shares are traded on The Nasdaq Stock Market under the symbols FRME and FRMEP, respectively.

The information regarding the redemption of the Subordinated Notes is based on the latest 8-K filing by First Merchants Corporation with the U.S. Securities and Exchange Commission. Investors and stakeholders are advised to consider this development in their assessment of the company's financial strategies and market activities. The redemption of these debt instruments reflects the company's financial decisions and may be of interest to shareholders and the investment community at large.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.