Associated to sell senior notes to partially repay Treasury debt
Green Bay-based Associated Banc-Corp, the corporate parent of Associated Bank, is seeking to raise $300 million through the sale of senior notes due March 28, 2016. The notes are to be sold at a price of 99.53 percent of the principal amount and will pay interest semi-annually. The offering is expected to close on March 28, 2011.
The bank will use a portion of the proceeds to repurchase about $262.5 million of the $525 million of the stock it issued to the U.S. Department of the Treasury as part of the U.S. Treasury’s Capital Purchase Program. The remaining proceeds of the offering will be used for general corporate purposes, including the repayment of its 6.75% subordinated notes at their maturity on August 15, 2011.
J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. are acting as joint bookrunners for the offering. Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and U.S. Bancorp Investments, Inc. are acting as co-managers for the offering.
