KANSAS CITY, MO (STL.News) UMB Financial Corporation (Nasdaq: UMBF) (“UMB”) announced Monday that it priced an offering of $200 million aggregate principal amount of 3.700 percent fixed-to-fixed rate subordinated notes, due 2030 at a price to the public of 100 percent of their face value. Interest on these notes will accrue at a rate equal to (i) 3.700 percent per annum from the original issue date to, but excluding, September 17, 2025, the reset date, and (ii) a fixed rate per annum equal to the five-year U.S.Treasury rate as of the reset date, plus 3.437 percent per annum, from the reset date, to and including, September 17, 2030.
Interest on the notes will be payable semi-annually in arrears, on September 17 and March 17 of each year, beginning on March 17, 2021. The offering of the notes is expected to close on September 17, 2020, subject to the satisfaction of customary closing conditions.
The notes are intended to qualify as Tier 2 capital for regulatory purposes. UMB estimates the net proceeds of the offering will be approximately $197.4 million, after deducting underwriting discounts and commissions and estimated transaction expenses payable by UMB. UMB intends to use the net proceeds from the offering of the notes for general corporate purposes, which may include, among other uses, contributing Tier 1 capital to the company’s wholly owned subsidiary, UMB Bank, n.a.
BofA Securities, Inc. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering. UMB Financial Services, Inc. and Wells Fargo Securities, LLC are acting as co-managers for the offering.
The notes are being offered and will be sold pursuant to an effective shelf registration statement (File No. 333-230787) that was previously filed with the Securities and Exchange Commission (SEC). This offering is being made only by means of a base prospectus and accompanying prospectus supplement.
Before you invest, you should read the preliminary prospectus supplement and accompanying base prospectus in the registration statement for more complete information about this offering. Copies of the preliminary prospectus supplement and accompanying base prospectus relating to the offering of the notes may be obtained by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, when available, copies of these documents may be obtained from:
BofA Securities, Inc.
Attention: Prospectus Department
200 North College Street, 3rd Floor
Charlotte, NC 28255-0001
JP Morgan Securities
Attention: Investment Grade Syndicate Desk
383 Madison Avenue
New York, NY 10179
Phone: (212) 834-4533