West Bancorporation, Inc. Announces Pricing of Subordinated Notes Offering
June 10 2022 - 9:19AM
West Bancorporation, Inc. (Nasdaq: WTBA; the “Company”), parent
company of West Bank, announced today the pricing of its offering
of $60 million of 5.25% Fixed-to-Floating Rate Subordinated Notes
due 2032 (the “Notes”). The Notes will initially bear interest at
5.25% per annum, with interest payable semi-annually in arrears,
commencing on the issue date, to, but excluding, June 15, 2027.
Commencing June 15, 2027, the interest rate on the Notes will reset
quarterly to a floating rate per annum equal to a benchmark rate
that is expected to be Three-Month Term SOFR (which is defined in
the Notes) plus 241 basis points, with interest payable quarterly
in arrears. The Company may redeem the Notes, in whole or in part,
on and after June 15, 2027, at a price equal to 100% of the
principal amount of the Notes being redeemed plus accrued and
unpaid interest. The Notes will mature on June 15, 2032 if they are
not earlier redeemed.
The Company expects to close the transaction,
subject to customary conditions, on or about June 14, 2022. The
Company intends to use the net proceeds of the offering for general
corporate purposes, including providing capital to support organic
growth and for investing in West Bank as regulatory capital. The
Notes are intended to qualify as Tier 2 capital for regulatory
purposes.
Piper Sandler & Co. is acting as the sole
underwriter for the offering.
This press release is neither an offer to sell
nor a solicitation of an offer to purchase any securities of the
Company. There will be no sale of securities in any jurisdiction in
which such an offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such jurisdiction. Any offer to sell or solicitation of an offer to
purchase securities of the Company will be made only pursuant to a
prospectus supplement and prospectus filed with the Securities and
Exchange Commission (“SEC”). The Company has filed a registration
statement (including a prospectus) (File No. 333-236740) and a
preliminary prospectus supplement with the SEC for the offering to
which this press release relates. Before making an investment
decision, you should read the prospectus and preliminary prospectus
supplement and other documents that the Company has filed with the
SEC for additional information about the Company and the
offering.
You may obtain these documents for free by
visiting the SEC’s website at www.sec.gov. Alternatively, the
Company or Piper Sandler & Co. will arrange to send you copies
of the prospectus and preliminary prospectus supplement upon
request by contacting fsg-dcm@psc.com.
About West Bancorporation, Inc. (Nasdaq:
WTBA)West Bancorporation, Inc. is headquartered in West
Des Moines, Iowa. Serving customers since 1893, West Bank, a
wholly-owned subsidiary of West Bancorporation, Inc., is a
community bank that focuses on lending, deposit services, and trust
services for small- to medium-sized businesses and consumers. West
Bank has six offices in the Des Moines, Iowa metropolitan area, one
office in Coralville, Iowa, and four offices in Minnesota in the
cities of Rochester, Owatonna, Mankato and St. Cloud.
Forward-Looking Statements
Certain statements in this news release, other
than purely historical information, including estimates,
projections, statements relating to the Company’s business plans,
objectives and expected operating results, and the assumptions upon
which those statements are based, are “forward-looking statements”
within the meanings of the Private Securities Litigation Reform Act
of 1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements may appear throughout this report. These
forward-looking statements are generally identified by the words
“believes,” “expects,” “intends,” “anticipates,” “projects,”
“future,” “confident,” “may,” “should,” “will,” “strategy,” “plan,”
“opportunity,” “will be,” “will likely result,” “will continue” or
similar references, or references to estimates, predictions or
future events. Such forward-looking statements are based upon
certain underlying assumptions, risks and uncertainties. Because of
the possibility that the underlying assumptions are incorrect or do
not materialize as expected in the future, actual results could
differ materially from these forward-looking statements. Risks and
uncertainties that may affect future results include: the effects
of the COVID-19 pandemic, including its effects on the economic
environment, our customers and our operations, including due to
supply chain disruptions, as well as any changes to federal, state
or local government laws, regulations or orders in connection with
the pandemic; interest rate risk; competitive pressures, including
from non-bank competitors such as “fintech” companies; pricing
pressures on loans and deposits; changes in credit and other risks
posed by the Company’s loan and investment portfolios, including
declines in commercial or residential real estate values or changes
in the allowance for loan losses dictated by new market conditions,
accounting standards (including as a result of the future
implementation of the current expected credit loss (CECL)
accounting standard) or regulatory requirements; changes in local,
national and international economic conditions, including rising
rates of inflation; changes in legal and regulatory requirements,
limitations and costs; changes in customers’ acceptance of the
Company’s products and services; cyber-attacks; unexpected outcomes
of existing or new litigation involving the Company; the monetary,
trade and other regulatory policies of the U.S. government,
including recent and anticipated rate increases; acts of war or
terrorism, including the Russian invasion of Ukraine, widespread
disease or pandemics, such as the COVID-19 pandemic, or other
adverse external events; developments and uncertainty related to
the future use and availability of some reference rates, such as
the London Interbank Offered Rate, as well as other alternative
reference rates; changes to U.S. tax laws, regulations and
guidance; liquidity risk due to excess liquidity at the Company’s
bank subsidiary; talent and labor shortages; and any other risks
described in the “Risk Factors” sections of reports filed by the
Company with the SEC. The Company undertakes no obligation to
revise or update such forward-looking statements to reflect current
or future events or circumstances after the date hereof or to
reflect the occurrence of unanticipated events.
For more information contact:Jane Funk,
Executive Vice President, Treasurer and Chief Financial Officer
(515) 222-5766
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