Home BancShares, Inc. announced the pricing of $300 million of its 3.125% fixed-to-floating rate subordinated notes due 2032 (the “Notes”). The Notes will initially bear interest at 3.125% per annum, payable semiannually in arrears, commencing on the issue date, to, but excluding, January 30, 2027. Commencing January 30, 2027, the interest rate on the Notes will reset quarterly to a floating rate per annum equal to a benchmark rate that is expected to be Three-Month Term SOFR (which is defined in the Notes) plus 182 basis points, payable quarterly in arrears.

The Company may redeem the Notes, in whole or in part, after January 30, 2027, at a price equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest. The Notes will mature on January 30, 2032 if they are not earlier redeemed, and are intended to qualify as Tier 2 capital of the Company for regulatory purposes. The Company expects to close the transaction, subject to customary conditions, on or about January 18, 2022.

The Company intends to use the net proceeds of this offering for general corporate purposes, which may include, but are not limited to the repayment of the Company's outstanding subordinated notes and subordinated debentures, the repayment of outstanding subordinated debentures that the Company would assume following the completion of its acquisition of Happy Bancshares, Inc. (“Happy”), investments at the holding company level, providing capital to support the growth of Centennial Bank and the Company's business, repurchases of the Company's common shares and the payment of the cash consideration components of future acquisitions.