Old National (NASDAQ: ONB) issues $450M fixed-to-floating subordinated notes

Rhea-AI Filing Summary

Old National Bancorp issued and sold $450,000,000 of 5.768% Fixed-to-Floating Rate Subordinated Notes due 2036. The notes were sold at a 0.75% underwriting discount, providing the company with approximately $446.6 million in net proceeds before expenses, to be used for general corporate purposes.

The notes pay a fixed 5.768% annual interest rate, semi-annually, from issuance to February 15, 2031, then a floating rate equal to a benchmark rate expected to be Three-Month Term SOFR plus 220 basis points, paid quarterly until maturity on February 15, 2036. The notes are subordinated obligations of Old National, junior to its senior debt, structurally subordinated to subsidiary liabilities, and may be redeemed at par plus accrued interest beginning February 15, 2031 or upon specified tax, regulatory capital, or investment company events, subject to Federal Reserve approval where required.

Insights

Bank capital structure analyst

Old National adds $450M in subordinated term funding with fixed-to-floating pricing.

Old National Bancorp issued $450,000,000 of subordinated notes due 2036, initially bearing a fixed 5.768% rate and later switching to a floating rate tied to Three-Month Term SOFR plus 220 basis points. Net proceeds are about $446.6 million before expenses.

The notes qualify as subordinated debt, ranking junior to senior obligations and structurally behind subsidiary liabilities, which is typical for this type of bank capital instrument. They are callable at par plus accrued interest starting on February 15, 2031, and upon certain tax, regulatory capital, or investment company events, with any redemption subject to Federal Reserve approval where required.

The company indicates proceeds are for general corporate purposes, which can encompass balance sheet and funding uses. The fixed-to-floating structure means interest cost will track the benchmark rate after February 15, 2031, so the economic impact over time will depend on future short-term rate levels and the company’s decision whether to exercise its call options.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) 
of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 26, 2026

OLD NATIONAL BANCORP

(Exact name of registrant as specified in its charter)

Indiana (State or other jurisdiction
of incorporation) 001-15817 (Commission File
Number) 35-1539838 (IRS Employer
Identification Number)

One Main Street, Evansville, Indiana	47708
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (773) 765-7675

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Title of each class		Trading symbol		Name of exchange on which registered
Common stock, No par value		ONB		NASDAQ Global Select Market
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series A		ONBPP		NASDAQ Global Select Market
Depositary Shares, each representing a 1/40th interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C		ONBPO		NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). 

Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 1.01 Entry into a Material Definitive Agreement.

On January 29, 2026, Old National Bancorp (the “Company”) completed the issuance and sale (the “Offering”) of $450,000,000 aggregate principal amount of its 5.768% Fixed-to-Floating Rate Subordinated Notes due 2036 (the “Notes”). The Offering was completed pursuant to the Company’s registration statement on Form S-3 (File No. 333-272312) (including a base prospectus) filed with the Securities and Exchange Commission (the “SEC”) on June 1, 2023, as supplemented by the prospectus supplement dated January 26, 2026, and filed with the SEC on January 26, 2026 (the “Prospectus Supplement”).

In connection with the Offering, the Company entered into an Underwriting Agreement, dated January 26, 2026 (the “Underwriting Agreement”), with Keefe, Bruyette & Woods, Inc. and Morgan Stanley & Co. LLC, as representatives of the several underwriters listed on Schedule A attached thereto (collectively, the “Underwriters”). The Notes were sold at an underwriting discount of 0.75%, resulting in net proceeds to the Company of approximately $446.6 million before deducting expenses of the Offering. The Company intends to use the net proceeds from the Offering for general corporate purposes. The Underwriting Agreement contains customary representations, warranties and covenants and includes the terms and conditions for the sale of the Notes in the Offering, indemnification and contribution obligations and other terms and conditions customary in agreements of this type.

The Notes were issued under the Subordinated Indenture, dated as of January 29, 2026 (the “Base Indenture”), as supplemented by the First Supplemental Indenture, dated as of January 29, 2026 (the “First Supplemental Indenture” and, together with the Base Indenture, the “Indenture”), between the Company and U.S. Bank Trust Company, National Association, as trustee (the “Trustee”).

From and including the date of issuance to, but excluding, February 15, 2031, or earlier redemption date, the Notes will bear interest at an initial fixed rate of 5.768% per annum, payable semi-annually in arrears on February 15 and August 15 of each year, commencing on August 15, 2026. From and including February 15, 2031 to, but excluding the maturity date, February 15, 2036, or earlier redemption date, the Notes will bear interest at a floating rate per annum equal to a benchmark rate, which is expected to be Three-Month Term SOFR (as defined in the First Supplemental Indenture), plus 220 basis points, payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, commencing on May 15, 2031. Notwithstanding the foregoing, if the benchmark rate is less than zero, then the benchmark rate shall be deemed to be zero.

The Company may, at its option, redeem the Notes (i) in whole or in part beginning on the interest payment date of February 15, 2031, and on any interest payment date thereafter or (ii) in whole but not in part upon the occurrence of a “Tax Event,” a “Tier 2 Capital Event” or the Company becoming required to register as an investment company pursuant to the Investment Company Act of 1940, as amended. The redemption price for any redemption is 100% of the principal amount of the Notes, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. Any redemption of the Notes will be subject to the receipt of the approval of the Board of Governors of the Federal Reserve System to the extent then required under applicable laws or regulations, including capital regulations.

There is no sinking fund for the Notes. The Notes rank junior to all of the Company’s existing and future senior indebtedness. In addition, the Notes are effectively subordinated to any secured indebtedness of the Company to the extent of the value of the assets securing such indebtedness. The Notes are structurally subordinated to all of the existing and future liabilities and obligations of the Company’s subsidiaries, including the deposit liabilities and claims of other creditors of the Company’s bank subsidiary, Old National Bank. The Notes are equal in right of payment with any of the Company’s existing and future subordinated indebtedness. The Notes are the obligations of the Company only and are not obligations of, and are not be guaranteed by, any of the Company’s subsidiaries.

The foregoing descriptions of the Underwriting Agreement and the Notes do not purport to be complete and are subject to, and qualified in their entirety by, the full text of (i) the Underwriting Agreement, (ii) the Base Indenture, (iii) the First Supplemental Indenture and (iv) the form of Note, each of which is attached hereto as an exhibit and is incorporated herein by reference.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information in Item 1.01 above is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.		Description
1.1		Underwriting Agreement, dated as of January 26, 2026, by and among Old National Bancorp, Keefe, Bruyette & Woods, Inc. and Morgan Stanley & Co. LLC as representatives of the several underwriters listed on Schedule A attached thereto
4.1		Subordinated Indenture, dated as of January 29, 2026, between Old National Bancorp and U.S. Bank Trust Company, National Association, as trustee
4.2		First Supplemental Indenture, dated as of January 29, 2026, between Old National Bancorp and Trustee
4.3		Form of 5.768% Fixed-to-Floating Rate Subordinated Note due 2036 (included in Exhibit 4.2 of this Current Report on Form 8-K)
5.1		Opinion of Squire Patton Boggs (US) LLP
5.2		Opinion of Nicholas J. Chulos, Executive Vice President, Chief Legal Officer and Corporate Secretary of Old National Bancorp
23.1		Consent of Squire Patton Boggs (US) LLP (included in Exhibit 5.1 of this Current Report on Form 8-K)
23.2		Consent of Nicholas J. Chulos, Executive Vice President, Chief Legal Officer and Corporate Secretary of Old National Bancorp (included in Exhibit 5.2 of this Current Report on Form 8-K)
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Current Report to be signed on its behalf by the undersigned hereunto duly authorized.

	OLD NATIONAL BANCORP
	By:	/s/ Nicholas J. Chulos
		Name:	Nicholas J. Chulos
		Title:	Executive Vice President, Chief Legal Officer and Corporate Secretary

Date: January 29, 2026

FAQ

What did Old National Bancorp (ONB) issue in this 8-K event?

Old National Bancorp issued $450,000,000 of 5.768% Fixed-to-Floating Rate Subordinated Notes due 2036. These notes add long-term subordinated debt to the balance sheet and are structured with an initial fixed interest rate that later converts to a floating rate.

How much cash will Old National Bancorp (ONB) receive from the subordinated notes?

Old National Bancorp will receive approximately $446.6 million in net proceeds before expenses. The notes were sold at a 0.75% underwriting discount, meaning underwriters retained a small fee while the company raised substantial new term funding for general corporate purposes.

What are the interest terms on Old National Bancorp’s (ONB) new subordinated notes?

From issuance to February 15, 2031, the notes pay a fixed 5.768% annual rate, with semi-annual payments. After that, to February 15, 2036, they pay a floating rate equal to a benchmark, expected to be Three-Month Term SOFR plus 220 basis points, with quarterly payments.

When can Old National Bancorp (ONB) redeem the 2036 subordinated notes?

Old National Bancorp may redeem the notes at 100% of principal plus accrued interest beginning on the February 15, 2031 interest payment date and on any interest payment date thereafter. It may also redeem upon specified tax, Tier 2 capital, or investment company events, subject to Federal Reserve approval where required.

How do Old National Bancorp’s (ONB) new notes rank relative to other obligations?

The notes are subordinated obligations, ranking junior to all existing and future senior indebtedness. They are effectively subordinated to secured debt up to collateral value and structurally subordinated to liabilities of subsidiaries, including bank deposits and other creditor claims at Old National Bank.

What will Old National Bancorp (ONB) use the subordinated note proceeds for?

Old National Bancorp states it intends to use the net proceeds from the offering for general corporate purposes. This broad category can include funding operations, supporting regulatory capital structure, or other corporate needs, though no specific projects or repayments are detailed in the disclosure.