Webster Financial Corp., the Waterbury-based parent of Webster Bank, has completed a $350 million public offering of subordinated notes, the company announced Sept. 11. The company disclosed earlier this month that it had entered into an underwriting agreement with BofA Securities, Goldman Sachs & Co., J.P. Morgan Securities and Morgan Stanley & Co., who acted […]
Webster Financial Corp., the Waterbury-based parent of Webster Bank, has completed a $350 million public offering of subordinated notes, the company announced Sept. 11.
The company disclosed earlier this month that it had entered into an underwriting agreement with BofA Securities, Goldman Sachs & Co., J.P. Morgan Securities and Morgan Stanley & Co., who acted as representatives for a group of underwriters.
Under the terms of the deal, the underwriters agreed to purchase the notes, which carry a fixed annual interest rate of 5.784% through Sept. 11, 2030. After that date, the rate will reset every five years to match the then-current U.S. Treasury rate for a five-year maturity, plus 212.5 basis points.
The notes are scheduled to mature on Sept. 11, 2035, with interest payable semiannually on March 11 and Sept. 11, beginning in March 2026.
The offering was made under Webster’s existing shelf registration with the U.S. Securities and Exchange Commission.
Subordinated notes are a form of debt that ranks below other obligations if a company enters liquidation. Banks often issue them to strengthen their capital base and support future growth.
Webster Bank operates more than 200 branches across Connecticut, New York, Massachusetts and Rhode Island.
