First Busey Corporation's Preferred Stock Offering
First Busey Corporation, known for its stability and growth in the financial sector, has recently priced an exciting underwritten public offering. This offering encompasses 8,000,000 depositary shares, with each share representing a fraction of ownership in its 8.25% Fixed Rate Series B Non-Cumulative Perpetual Preferred Stock. The valuation for each of these shares stands at a liquidation preference of $1,000, effectively making each depositary share worth $25.00.
Details of the Offering
With this new offering, dividends on the Series B preferred stock are set at an annual rate of 8.25%, expected to be declared and paid out quarterly, which appeals to investors looking for consistent income. The set payment dates will include March 1, June 1, September 1, and December 1, commencing September 1, 2025. To enhance investor confidence, Busey has reserved the right to redeem shares at the original price, ensuring a steady return for early participants.
Use of Proceeds
The financial benefits from this offering are anticipated to support Busey’s commitment to balance sheet growth. Specifically, proceeds from the offering aim to redeem existing subordinated notes while simultaneously facilitating general corporate purposes. This approach underscores Busey’s strategic method of financial management and solidifies its footing as a resilient player in the banking industry.
Listing on Nasdaq
First Busey Corporation plans to list these depositary shares on the Nasdaq Global Select Market under the symbol 'BUSEP.' This step not only boosts the visibility of the offering but also reflects Busey’s growth trajectory as it aligns with investor interests.
Management and Advisors for the Offering
The underwriting task for this offering has been entrusted to esteemed financial institutions, including Piper Sandler & Co., Morgan Stanley & Co. LLC, and Keefe, Bruyette & Woods, Inc. Their expertise is crucial for ensuring the success of this public offering, marking another critical phase in Busey’s growth strategy. Janney Montgomery Scott LLC joins as a co-manager, further reinforcing the backing with extensive market knowledge.
Company Growth and Corporate Profile
As of March 31, 2025, First Busey Corporation boasts an impressive portfolio, featuring a total asset value of $19.46 billion and numerous banking centers across multiple states. This strategic positioning enables Busey to tap into diverse markets and enhance its operational capabilities.
Subsidiary Banking Operations
Busey Bank, as a wholly-owned subsidiary of First Busey Corporation, serves as a cornerstone of their operations with total assets of approximately $11.98 billion. With an extensive network of 62 banking centers across regions, Busey Bank provides critical financial services tailored to community needs.
Wealth Management Initiatives
First Busey Corporation's Wealth Management division also plays a pivotal role in its overall strategy, managing $13.68 billion in assets as of March 31, 2025. This division offers a wide range of services, including investment management, brokerage, and tax preparation. These services cater to individuals, businesses, and foundations, reinforcing the firm’s commitment to exceptional customer service.
Diverse Financial Technology Solutions
The market faced by Busey has evolved, and their subsidiary FirsTech rises to the occasion by providing innovative financial technology solutions. These include comprehensive payment options designed for small- and medium-sized businesses, ensuring Busey remains at the forefront of digital banking capabilities.
Acknowledgment and Recognition
First Busey Corporation has continuously garnered accolades within the banking sector. For the fourth consecutive year, it has been recognized among America’s Best Banks and received various awards for workplace excellence, showcasing its positive impact on both customers and employees alike. Busey's culture of integrity, engagement, and community commitment is consistently acclaimed, reinforcing its reputation as an employer of choice and a leader in financial services.
Frequently Asked Questions
What is First Busey Corporation's recent offering about?
The recent offering is about the pricing of 8,000,000 depositary shares of the Series B preferred stock, aimed at raising capital for the company.
What will be the use of the proceeds from this offering?
The proceeds are primarily intended to redeem existing subordinated notes and support general corporate purposes, including balance sheet growth.
When are the dividends expected to be paid?
Dividends on the Series B preferred stock will be payable quarterly, starting from September 1, 2025.
Where will the depositary shares be listed?
The depositary shares will be listed on the Nasdaq Global Select Market under the symbol 'BUSEP.'
How has First Busey Corporation been recognized recently?
First Busey has received multiple awards for workplace performance and is repeatedly listed among America’s Best Banks, highlighting its strong reputation in the financial industry.
