Hanmi Financial Issues $55M Subordinated Notes, Redeems $110M Existing Notes

summarizeSummary

Hanmi Financial issued $55 million in 10-year subordinated notes at 6.50% and will redeem $110 million of existing 3.75% notes, reducing total subordinated debt by $55 million and extending maturity.

check_boxKey Events · Financing and Capital Events · HAFC

• New $55M Subordinated Debt Issued

  Issued $55.0 million of 6.50% Fixed-to-Floating Rate Subordinated Notes due 2036 in a private placement. Fixed rate for five years, then floating at Three-Month Term SOFR + 234 bps.

• Redemption of $110M Existing Notes

  Will redeem all $110.0 million of outstanding 3.75% Fixed-to-Floating Rate Subordinated Notes due 2031 on or about September 1, 2026, at par plus accrued interest.

• Net Debt Reduction of $55M

  The transaction reduces total subordinated debt from $110 million to $55 million, improving leverage and lowering future interest expense despite the higher coupon on the new notes.

• Tier 2 Capital Treatment

  The new notes are structured to qualify as Tier 2 capital under Federal Reserve guidelines, supporting regulatory capital ratios.

auto_awesomeAnalysis · HAFC · Finance

Hanmi Financial raised $55 million in new subordinated debt at 6.50% fixed for five years, then floating at SOFR + 234 bps. The proceeds, along with corporate cash, will redeem $110 million of existing 3.75% notes due 2031. This refinancing reduces total subordinated debt by $55 million, lowering interest costs and extending maturity to 2036. The new notes qualify as Tier 2 capital, maintaining regulatory ratios. The transaction is a net positive for the balance sheet, though the higher coupon on the new notes partially offsets savings from the larger redemption.