Signature Bank’s $200 Million Fixed‑to‑Floating Rate Subordinated Notes Offering


Cravath represented the initial purchaser, Morgan Stanley, in connection with the $200 million fixed‑to‑floating rate subordinated notes offering of Signature Bank.

The notes bear interest at 4.125% per annum, payable semi-annually in arrears on each May 1 and November 1 commencing May 1, 2020 until November 1, 2024. On November 1, 2024 and thereafter, interest on the notes will accrue at LIBOR plus 255.9 basis points, paid quarterly in arrears on each February 1, May 1, August 1 and November 1.

Proceeds from the sale of the notes will be used for general corporate purposes and repurchasing common stock.

Signature Bank (Nasdaq: SBNY) is a New York-based full service commercial bank. Since commencing operations in May 2001, the Bank has grown to $49.41 billion in assets, $37.94 billion in loans, $39.06 billion in deposits, $4.74 billion in equity capital and $3.51 billion in other assets under management as of September 30, 2019.

The Cravath team included partners Andrew J. Pitts (Picture) and D. Scott Bennett and associates James Ding and Charles A. Dobb on securities matters, and associate Rory M. Minnis on tax matters.

Involved fees earner: Scott Bennett – Cravath Swaine & Moore; James Ding – Cravath Swaine & Moore; Charles Dobb – Cravath Swaine & Moore; Rory Minnis – Cravath Swaine & Moore; Andrew Pitts – Cravath Swaine & Moore;

Law Firms: Cravath Swaine & Moore;

Clients: Morgan Stanley;