Old National Bancorp Plans $300M Fixed-to-Floating Rate Subordinated Notes Offering

summarizeSummary

Old National Bancorp is planning to offer $300 million in fixed-to-floating rate subordinated notes due 2036 for general corporate purposes, following strong financial results.

check_boxKey Events

• Offering of $300 Million Subordinated Notes

  Old National Bancorp plans to offer $300 million in fixed-to-floating rate subordinated notes due 2036.

• 10-Year Term with 5-Year Call Option

  The notes will have a 10-year term with a call option after 5 years.

• Investment Grade Rating

  The expected security rating for the notes is Baa1 (negative outlook) by Moody's Ratings, indicating investment-grade credit quality.

• Proceeds for General Corporate Purposes

  The capital raised from the offering will be used for general corporate purposes.

auto_awesomeAnalysis

This Free Writing Prospectus outlines Old National Bancorp's intention to raise $300 million through a fixed-to-floating rate subordinated notes offering. The substantial capital raise, representing a notable portion of the company's market capitalization, is intended for general corporate purposes. The notes carry an investment-grade Baa1 (negative outlook) rating from Moody's, indicating a relatively strong credit profile. This financing event follows the company's recent announcement of strong fourth-quarter and record full-year 2025 financial results, suggesting the company is leveraging its positive performance to strengthen its balance sheet and fund future operations. The issuance of debt rather than equity avoids immediate shareholder dilution.