Equity Bancshares, Inc. Announces Completion of $42 Million Subordinated Notes Offering and Renewal of Senior Credit Facility

Proceeds from private placement transaction will pay down Senior Credit Facility and provide the Company with opportunistic capital

WICHITA, Kan., June 30, 2020 (GLOBE NEWSWIRE) -- Equity Bancshares, Inc. (NASDAQ: EQBK), (“Equity”, “we”, “us”, “our”), the Wichita-based holding company of Equity Bank, announced the issuance of $42 million aggregate principal amount of fixed-to-floating rate subordinated notes due 2030 (the “Notes”) to certain institutional accredited investors and qualified institutional buyers in a private placement transaction and the renewal of its senior credit facility with ServisFirst Bank. Equity intends to use the net proceeds from the offering for general corporate purposes, including repayment of the entire $40.0 million currently drawn under Equity’s senior credit facility and for opportunistic growth.

The Notes are intended to qualify as Tier 2 capital for regulatory capital purposes. The Notes will initially bear interest at a fixed annual rate of 7.00%, payable semi-annually in arrears to, but excluding, June 30, 2025. From and including June 30, 2025, to, but excluding, the maturity date or early redemption date, the interest rate will reset quarterly to an interest rate per annum equal to the then-current three-month term SOFR (provided, that in the event the three-month term SOFR is less than zero, the three-month term SOFR will be deemed to be zero) plus 688 basis points, payable quarterly in arrears. Equity is entitled to redeem the Notes, in whole or in part, on any interest payment date on or after June 30, 2025, and to redeem the Notes at any time in whole upon certain other specified events. The Egan-Jones Ratings Company assigned an investment grade rating of BBB to the Notes.

In connection with the issuance and sale of the Notes, Equity entered into a registration rights agreement with the purchasers of the Notes pursuant to which Equity has agreed to take certain actions to provide for the exchange of the Notes for subordinated notes that are registered under the Securities Act of 1933, as amended (the “Securities Act”), with substantially the same terms as the Notes.

“We appreciate the support of our shareholders as we live up to our mission as a sophisticated, innovative community bank,” said Brad S. Elliott, Chairman and CEO of Equity. “This successful capital raise indicates support for our position in our markets, region, and industry as well as the opportunity to continue our growth trends and our service to customers in times of need. We believe this is a cost-effective way to increase our capital without diluting our current shareholders. We also thank our financial partners at ServisFirst Bank for our relationship and their continued support of our mission.”