GREENVILLE, S.C., June 12, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) today announced the pricing of its public offering of $100 million aggregate principal amount of 5.000% Fixed-to-Floating Senior Notes due 2030. The price to the public for the Senior Notes is 100% of the principal amount of the Senior Notes. The Senior Notes will have an initial fixed interest rate from and including June 17, 2020, but excluding June 15, 2025, payable semi-annually in arrears on June 15 and December 15 of each year. From, and including June 15, 2025, the Senior Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Senior Notes), plus a spread of 487 basis points, payable quarterly in arrears on March 15, June 15, September 15 and December 15 of each year.
The Senior Notes are redeemable in whole or in part, at United’s option, on any interest payment date on or after June 15, 2025. The redemption price will be equal to 100% of the principal amount to be redeemed plus accrued and unpaid interest thereon to but excluding the redemption date. The Senior Notes will mature on June 15, 2030. The offering is expected to close on June 17, 2020, subject to the satisfaction or waiver of customary closing conditions.
United expects to use the net proceeds from the sale of the Senior Notes for general corporate purposes, which may include, without limitation, repayment of United’s existing indebtedness; funding United’s capital expenditures, operating expenses and working capital needs; and implementing growth strategies, including opportunistic strategic acquisitions and payment of the cash consideration for the acquisition of Three Shores Bancorporation, Inc.
U.S. Bancorp Investments, Inc. and Morgan Stanley & Co. LLC, are acting as joint book-runners for the senior debt offering.
About United Community Banks, Inc.
United Community Banks, Inc. (NASDAQ: UCBI) (“United”) is a bank holding company headquartered in Blairsville, Georgia, with executive offices in Greenville, South Carolina. United is one of the largest full-service financial institutions in the Southeast, with $13.1 billion in assets, and 149 offices in Georgia, North Carolina, South Carolina and Tennessee. It operates principally through United Community Bank, its bank subsidiary, which specializes in personalized community banking services for individuals, small businesses and companies. Services include a full range of consumer and commercial banking products, including mortgage, advisory, and treasury management. Respected national research firms consistently recognize United Community Bank for outstanding customer service. For six of the past seven years, J.D. Power has ranked United Community Bank first in customer satisfaction in the Southeast, and most recently, awarded United Community Bank the highest score in overall satisfaction in the Southeast for 2020. In 2019, Forbes magazine included United Community Bank in its inaugural list of the World’s Best Banks, and in 2020, recognized United Community Bank for the seventh consecutive year on its list of the 100 Best Banks in America. United Community Bank also received the 2019 Greenwich Excellence Award for overall satisfaction in Middle Market Banking in the South and Small Business Banking Excellence Awards for both overall satisfaction and cash management in the South. Additional information about United and United Community Bank can be found at www.ucbi.com.
