Byline Bancorp, Inc. Completes Private Placement of $75.0 Million of 6.875% Fixed-to-Floating Rate Subordinated Notes - Candlesense

Byline Bancorp, Inc. Completes Private Placement of $75.0 Million of 6.875% Fixed-to-Floating Rate Subordinated Notes

CHICAGO--(BUSINESS WIRE)--Byline Bancorp, Inc. (“Byline” or the “Company”) (NYSE: BY), the parent company of Byline Bank (the “Bank”), today announced the completion of a private placement of $75.0 million in aggregate principal amount of 6.875% Fixed-to-Floating Rate Subordinated Notes due 2035 (the “Notes”). The Company intends to use the net proceeds of the private placement of the Notes to redeem $75.0 million of outstanding 6.00% Fixed-to-Floating Rate Subordinated Notes due 2030. The Note

Related Questions

How does the new 6.875% Fixed‑to‑Floating Subordinated Notes compare to the terms of the redeemed 6.00% notes in terms of interest expense and maturity profile? What are the covenant and call protection provisions of the new notes, and how do they compare to the old notes? Could the higher fixed‑to‑floating rate affect cash flow volatility under different interest‑rate scenarios? How does the issuance affect Byline's Tier 2 capital ratio and compliance with regulatory capital requirements? Is the private placement oversubscribed or under‑subscribed, and what does that indicate about investor demand? What is the market perception of Byline’s strategy to replace lower‑rate notes with higher‑rate, longer‑dated securities? How will the refinancing of $75M of 6% notes with 6.875% notes affect Byline's overall cost of capital? Will the higher coupon rate increase the bank's net interest margin or erode earnings? Will this transaction affect the bank’s dividend policy or future share repurchase plans? How does the pricing and structure compare with similar financing deals by peer regional banks? How might this transaction influence BY’s stock price in the short term (intraday/overnight) and long term? What are the market's expectations for the yield and liquidity of these subordinated notes in the secondary market? What credit rating impact could result from adding higher‑rate subordinated debt to the balance sheet? What effect will the redemption have on Byline's earnings per share (EPS) and return on equity (ROE) for the next reporting period? What is the expected impact on Byline's leverage ratios and Tier 1 capital after the private placement?