Valley National (VLY) sells $500M sub notes, calls $300M 2031 debt
Rhea-AI Filing Summary
Valley National Bancorp has issued $500 million of 6.219% fixed-to-floating rate subordinated notes due 2036 and plans to use the net proceeds of about $494.1 million primarily to repay existing subordinated debt and for general corporate purposes. The notes pay a fixed 6.219% coupon until June 1, 2031, then reset quarterly to a floating rate based on a benchmark, expected to be three-month Term SOFR, plus 243 basis points. They are intended to qualify as Tier 2 regulatory capital and are redeemable at the company’s option, subject to Federal Reserve approval, starting June 1, 2031 or earlier upon certain tax or regulatory events. Separately, Valley will redeem in full $300 million of 3.00% fixed-to-floating rate subordinated notes due 2031 on June 15, 2026 at par plus accrued interest, after which no such 2031 notes will remain outstanding.
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Insights
Valley refinances subordinated debt, extending maturity while maintaining Tier 2 capital.
Valley National Bancorp has issued $500,000,000 of 6.219% fixed-to-floating rate subordinated notes due 2036, intended to qualify as Tier 2 capital. The structure shifts interest from a fixed 6.219% rate to a floating SOFR-based coupon plus 2.43% after June 1, 2031.
The company estimates net proceeds of about $494.1 million and disclosed plans to use an amount equal to those proceeds to redeem or repay its 3.00% fixed-to-floating rate subordinated notes due June 15, 2031 and for general corporate purposes. It has already called $300,000,000 of these 2031 notes for redemption on June 15, 2026 at par plus accrued interest.
This sequence lengthens the debt maturity profile at a higher stated coupon but preserves regulatory capital treatment. Actual economic impact will depend on future benchmark rates after the switch to floating interest in 2031 and broader funding conditions disclosed in subsequent company filings.
8-K Event Classification
Key Figures
Key Terms
Fixed-to-Floating Rate Subordinated Notes financial
Tier 2 capital financial
shelf registration statement regulatory
Three-Month Term SOFR financial
redemption price financial
FAQ
What type of notes did Valley National Bancorp (VLY) issue in May 2026?
How will Valley National Bancorp use the net proceeds from the $500 million subordinated notes?
When can Valley National Bancorp redeem the new 6.219% subordinated notes?
What are the key interest terms of Valley National Bancorp’s 2036 subordinated notes?
What did Valley National Bancorp announce regarding its 3.00% subordinated notes due 2031?
Do the new Valley National Bancorp subordinated notes count toward regulatory capital?
Filing Exhibits & Attachments
11 documentsPress Releases
Other Documents
- EX-1.1 EX-1.1 244.1 KB
- EX-4.1 EX-4.1 444.4 KB
- EX-4.2 EX-4.2 157.4 KB
- EX-5.1 EX-5.1 15.9 KB
- EX-5.2 EX-5.2 18.2 KB
- EX-101 XBRL TAXONOMY EXTENSION SCHEMA 5.1 KB
- EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE 13.9 KB
- EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE 23.6 KB
- EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE 14.9 KB