SouthState Corporation has filed an offering for fixed-to-floating rate subordinated notes due in 2035. The size of the offering was not disclosed in the SEC filing. This move indicates the company's strategy to manage its capital structure and secure funding for future operations.
The issuance of subordinated notes can enhance the company's Tier 2 capital, providing additional financial flexibility. Such financing events are typically undertaken to support organic growth, fund strategic initiatives, or optimize the overall cost of capital. This filing is a preparatory step for potential debt issuance.
This action reflects SouthState's ongoing efforts in capital management following its recent strategic transactions, including the Independent Financial acquisition and balance sheet restructuring. The company aims to maintain a robust capital position to support its expansion in high-growth markets.
The fixed-to-floating rate structure offers flexibility in varying interest rate environments, which can be beneficial for long-term financial planning. This type of debt instrument is a common tool for financial institutions to strengthen their balance sheets and fund their lending activities.
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