Overview of the Offering#
Fulton Financial Corporation, based in Lancaster, Pennsylvania, has announced the pricing of $300 million in subordinated notes. These notes are set to mature in 2036 and are categorized as Fixed-to-Floating Rate Subordinated Notes. This means that they will initially pay a fixed interest rate before switching to a variable rate later on.
Interest Rates and Payment Structure#
The notes will offer a fixed interest rate of 5.950% per year from May 5, 2026, until May 15, 2031. After this period, the interest will change to a floating rate, which is based on the Three-Month Term SOFR (Secured Overnight Financing Rate) plus an additional 2.17%. Interest payments will be made semi-annually during the fixed period and quarterly during the floating rate period.
Use of Proceeds#
Fulton Financial plans to use the proceeds from this offering to pay off $195 million of its existing subordinated notes that are due in 2030, which currently have a lower interest rate of 3.250%. The remaining funds will be allocated for general corporate purposes. The closing of this offering is expected around May 5, 2026, pending standard closing conditions.
Company Background and Recent Performance#
Fulton Financial is a significant player in the financial sector, operating over 200 financial centers across several states, including Pennsylvania and New Jersey. The company has a market capitalization of $4.15 billion and has maintained a dividend yield of 3.52% for its investors. Recently, Fulton reported its first-quarter earnings for 2026, achieving an earnings per share (EPS) of $0.51, which surpassed expectations. However, its revenue of $331.8 million fell slightly short of forecasts, indicating mixed results in its financial performance.