Veritex Holdings’ $125 Million Notes Offering

Bracewell LLP advised the underwriters on the deal.

Veritex Holdings, Inc. (Nasdaq: VBTX) (“Veritex” or the “Company”), the parent holding company for Veritex Community Bank, announced that it has priced the underwritten public offering of $125 million aggregate principal amount of its Fixed-to-Floating Rate Subordinated Notes due 2030 (the “Notes”). The Notes will initially bear a fixed interest rate of 4.125% per year. Commencing on October 15, 2025, the interest rate on the Notes will reset on a quarterly basis to a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the Notes), plus 399.5 basis points, payable quarterly in arrears. The offering is expected to fund on October 5, 2020, subject to the satisfaction of customary closing conditions.

Veritex intends to use the proceeds of the offering for general corporate purposes, including the potential repayment of outstanding indebtedness, and supporting capital levels at Veritex Community Bank.

Keefe, Bruyette & Woods, A Stifel Company is the sole book-running manager for the offering. Stephens Inc. and Raymond James & Associates, Inc., are co-managers.

Headquartered in Dallas, Texas, Veritex is a bank holding company that conducts banking activities through its wholly-owned subsidiary, Veritex Community Bank, with locations throughout the Dallas-Fort Worth metroplex and in the Houston metropolitan area. Veritex Community Bank is a Texas state chartered bank regulated by the Texas Department of Banking and the Board of Governors of the Federal Reserve System.

The Bracewell team was led by Will Anderson (Picture) and also included Joshua T. McNulty, Don J. Lonczak, Ian R. Brown and Caroline E. Ellis.

Involved fees earner: William Anderson – Bracewell; Ian Brown – Bracewell; Caroline Ellis – Bracewell; Don Lonczak – Bracewell; Joshua McNulty – Bracewell;

Law Firms: Bracewell;

Clients: Keefe, Bruyette & Woods; Raymond James & Associates, Inc.; Stephens Inc.;

Author: Ambrogio Visconti