STAR Financial Group Announces Completion of $50 Million Private Placement of Subordinated Notes

FORT WAYNE, Ind. - September 22, 2021 – STAR Financial Group, Inc. (OTC - SFIGA) is pleased to announce that the Company has completed a private placement of $50 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 (the “Notes”) to certain qualified institutional buyers.
The Notes will initially bear interest at 3.25% per year, payable semi-annually in arrears. Beginning October 1, 2026 through the maturity date or earlier redemption, the interest rate will reset quarterly based on the then current Three-Month Term SOFR plus 257 basis points, payable quarterly in arrears. Also beginning on October 1, 2026 through maturity, the Notes may be redeemed in whole or in part, at the Company’s option. The Notes will mature on October 1, 2031.
The Notes are structured to qualify as Tier 2 capital instruments for regulatory capital purposes. The Company intends to utilize the proceeds from the sale of the Notes to repurchase outstanding shares of its common stock and to support the general operations of the Company and its wholly owned subsidiary, STAR Financial Bank. STAR Financial Group, Inc., Chairman, Thomas M. Marcuccilli stated, “We are pleased to have successfully completed this subordinated debt issuance at favorable pricing.” PNC FIG Advisory, part of PNC Capital Markets LLC, served as sole placement agent. Tucker Ellis, LLP served as legal counsel to the Company and Pillar+Aught served as legal counsel to the placement agent.
STAR Financial Group, headquartered in Fort Wayne, Indiana, is the holding company parent of STAR Financial Bank. STAR is committed to delivering quality financial expertise and distinctive banking solutions to exceed customer expectations. In addition, STAR Private Advisory offers private banking, investment and fiduciary services. STAR has grown to $2.8 billion in assets with locations across central and northeast Indiana. For more information, visit
Forward-Looking Statements
Statements made in this press release that are not historical facts are forward-looking statements. These forward-looking statements are not guarantees and involve risks and uncertainties that could cause actual results to differ materially from those contemplated in such forward-looking statements. Expectations and assumptions related to forward-looking statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the Company’s control. Therefore, there can be no assurance that the expected results contemplated in the forward-looking information will be achieved and should not be relied upon or regarded as the Company’s express or implied representation that any strategy, objectives or other plans will be achieved. Forward-looking statements are not a guarantee of future performance or results, are based on information available at the time the statements are made and involve known and unknown risks, uncertainties and other factors that could cause our actual results to differ materially from the information in the forward-looking statements and can change as a result of many possible events or factors, not all of which are known to us or in our control.