NBHC Raises $150M in Subordinated Notes Amid Strong Investor Demand

National Bank Holdings Corporation (NBHC) has completed a public offering of $150.0 million in subordinated notes. The notes carry a fixed interest rate of 5.875% for the first five years, followed by a variable rate. Strong investor demand led the company to increase the offering from an initial $100.0 million target.

The newly issued notes are set to mature in 2036. They will accrue interest at 5.875% annually for the first half of their term, before switching to a floating rate for the remaining five years. The company intends for these notes to qualify as Tier 2 capital one login under regulatory standards.

Piper Sandler & Co. served as the sole book-running manager for the transaction. Legal support was provided by Wachtell, Lipton, Rosen & Katz for NBHC, while Otteson Shapiro LLP advised the underwriter. The offering's success reflects investor confidence in the company's financial position.

NBHC operates across eight states, including Colorado, Texas, and Florida, with over 100 capital one banking centres. Its services include residential mortgage banking and wealth management, primarily within its core markets. The trust and wealth management division functions under the Bank of Jackson Hole Trust charter.

The company has noted that its future performance depends on executing growth plans, meeting regulatory requirements, and managing risks effectively. Current market conditions, such as the 3-Month Term SOFR rate holding steady at 3.64% in early February, may influence the variable interest rates period of the notes.

The $150.0 million offering strengthens NBHC's capital one base and supports its long-term strategy. The notes will provide additional regulatory capital while offering investors a mix of fixed and variable returns. The company continues to expand its financial services across its multi-state network.