WSFS Financial Corporation priced a $200 million aggregate principal amount of fixed‑to‑floating rate senior unsecured notes due 2035. The notes carry a fixed coupon of 5.375 % per annum through December 15, 2030, after which they will reset to the Three‑Month Term SOFR plus 189 basis points, payable quarterly. The pricing reflects a spread of 160 basis points to the 5‑year Treasury, indicating a competitive yield in the current market environment. Piper Sandler, Keefe, Bruyette & Woods, Stifel, and RBC Capital Markets served as joint book‑running managers for the transaction.
The net proceeds of $200 million will be used to repay $150 million of WSFS’s existing fixed‑to‑floating rate senior unsecured notes due 2030 and for general corporate purposes. By refinancing higher‑cost debt at a lower rate, the company extends the maturity of its debt profile, reduces interest expense, and preserves capital flexibility. The move also supports the bank’s fee‑based growth initiatives without diluting equity, aligning with its long‑term funding strategy.
As of September 30, 2025, WSFS reported $20.8 billion in assets and $93.4 billion in assets under management and administration. The new notes are rated Baa2 by Moody’s, A(low) by Morningstar DBRS, and A‑ by Kroll, with KBRA reaffirming the A‑ rating in July 2025. The issuance adds $200 million to the balance sheet but at a lower cost, strengthening the company’s capital position and credit profile.
WSFS has a history of active debt management, having paid off $100 million of 2026 debt in 2021 using proceeds from a $150 million issuance. The current spread of 160 bps to the 5‑year Treasury reflects a competitive environment for financial‑institution debt, where yields are modest but attractive for issuers seeking to lock in lower rates before potential future rate hikes. The fixed coupon period through 2030 provides predictable cash flows, while the floating component offers protection against rising rates after that date.
The issuance positions WSFS to manage its debt profile more efficiently, support fee‑based growth, and maintain a strong capital position without equity dilution. The 2035 maturity aligns with the company’s long‑term funding plan, ensuring that future capital needs can be met with predictable cash flows and that the bank remains well‑capitalized in a potentially tightening credit market.
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