Horizon Bancorp closes $100M sub notes offering

Horizon Bancorp closes $100M sub notes offering

Horizon Bancorp, Inc. has successfully closed a $100 million offering of subordinated notes, further bolstering its financial position. The offering, which was managed by Keefe, Bruyette & Woods and Performance Trust Capital Partners, reflects the bank's ongoing efforts to strengthen its balance sheet and enhance its liquidity [2].

The $100 million subordinated notes offering is part of Horizon Bancorp's strategic actions aimed at unlocking earnings power and positioning the company for future growth. The bank has been recognized for its recent equity offering of $90 million and the sale of approximately $1.4 billion in securities and $200 million in auto loans, which have contributed to a cleaner and stronger balance sheet [1].

The closing of this offering comes on the heels of an upgrade by Keefe, Bruyette & Woods, which raised its price target for Horizon Bancorp's stock to $19.00 from $18.00, reflecting a positive outlook on the company's strategic moves. The analysts noted a boost to Horizon Bancorp's return on assets (ROA) by approximately 50 basis points, as well as a cleaner balance sheet [1].

The successful execution of this offering demonstrates Horizon's ability to access capital markets effectively, indicating investor confidence in the company. The net proceeds from the offering are intended to support general corporate purposes and potential balance sheet repositioning, positioning the company for future growth opportunities [2].

References:
[1] https://www.ainvest.com/news/horizon-bancorp-shares-surge-upgrade-keefe-bruyette-woods-2508/
[2] https://www.quiverquant.com/news/Horizon+Bancorp%2C+Inc.+Closes+%24103.5+Million+Public+Offering+of+Common+Stock