Home BancShares, Inc. Announces Price of Subordinates

CONWAY, Ark., Jan. 13, 2022 (GLOBE NEWSWIRE) — Home BancShares, Inc. (NYSE: HOMB) (“Home” or the “Company”), parent company of Centennial Bank (“Centennial”), today announced today priced $300 million of its 3.125% fixed-floating subordinated notes due 2032 (the “Notes”). The notes will initially bear interest at the rate of 3.125% per annum, payable semi-annually in arrears, from the date of issue, until January 30, 2027 excluded. Beginning January 30, 2027, the interest rate on the Notes will reset quarterly at an annual floating rate equal to a benchmark rate which is expected to be the three-month 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 redeemed plus accrued and unpaid interest. The notes will mature on January 30, 2032 if not redeemed earlier and are intended to qualify as the company’s Tier 2 capital 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 not limited to, the repayment of the Company’s outstanding subordinated notes and subordinated debentures, the repayment of the outstanding subordinated debentures that the Company would assume following the 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 common shares of the Company and payment of components of the cash consideration future acquisitions.

Piper Sandler & Co. acted as bookrunner for the offering.

Home has filed a shelf registration statement on Form S-3 (File No. 333-261495) (including a base prospectus) under the Securities Act of 1933, as amended, and a preliminary prospectus supplement dated January 13, 2021 relating to this offering with the Securities and Exchange Commission (the “SEC”), and it will file a final prospectus supplement relating to the offering of the Notes with the SEC. Prospective investors should read the Registration Statement (including the Base Prospectus), the Preliminary Prospectus Supplement and other documents the Company has filed and will file with the SEC which are incorporated by reference into the Registration Statement. and each prospectus supplement for fuller information about the Company and the offering, including the risks associated with the securities and the offering.

This announcement does not constitute an offer to sell or the solicitation of an offer to buy such securities, and there will be no offer or sale of such securities, in any jurisdiction in which such an offer, solicitation or sale would be. illegal. The offering will be made only by means of a prospectus supplement and the accompanying prospectus, copies of which may be obtained from the investor relations section of Home’s website at: www.homebancshares.com or the SEC’s website at: www.sec. govt. Alternatively, you may obtain a copy of the prospectus supplement and the prospectus accompanying the offering by contacting: Piper Sandler & Co. at [email protected]


This press release may contain forward-looking statements regarding the plans, expectations, objectives and future prospects of the Company, as well as statements regarding the proposed business combination transaction involving Home and Happy and statements regarding the offering. of tickets offered. Statements contained in this press release that are not historical facts should be considered as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of events, performance or future results. When the company uses words such as “can”, “plan”, “propose”, “contemplate”, “anticipate”, “believe”, “intend”, “continue”, “expect” , “Project”, “predict”, “estimate”, “could”, “should”, “would” and similar expressions, you should regard them as identifying forward-looking statements, although the Company may use other expressions. Forward-looking statements of this type speak only as of the date of this press release. By their nature, forward-looking statements involve inherent risks and uncertainties. Various factors could cause actual results to differ materially from those contemplated by forward-looking statements. These factors include, but are not limited to, the following: economic conditions, credit quality, interest rates, loan demand, real estate values ​​and unemployment; disruptions, uncertainties and related effects on its business and operations due to the ongoing coronavirus (COVID-19) pandemic and measures that have been or may be implemented or imposed in response to the pandemic, including including the impact on, among other things, credit quality and liquidity; the possibility that the proposed acquisition of Happy will not close as planned or not at all because required regulatory approvals and other closing conditions are not received or met on a timely basis, or not at all; the possibility that such a transaction may be more costly to complete than expected, including due to unforeseen factors or events; the risk that the benefits of the transaction will not be fully realized or may take longer than expected to be realized, including due to changes in general economic and market conditions, current or future effects of the pandemic COVID-19, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which it operates; the ability to integrate Home and Happy’s activities quickly and efficiently; reaction to the transaction from customers, employees and counterparties of companies; the diversion of management time on procurement issues; the effect of any mergers, acquisitions or other future transactions to which the Company or its banking subsidiary may from time to time be a party, including due to one or more of the factors described above as they would be related to such a transaction ; the ability to identify, complete and / or complete additional acquisitions; legislative and regulatory changes and the risks and expenses associated with current and future laws and regulations, including those in response to the COVID-19 pandemic; technological changes and cybersecurity risks; the effects of changes in accounting policies and practices; changes in government monetary and fiscal policies; political instability; competition from other financial institutions; claims, expenses and other potential negative effects related to pending or future litigation, regulatory reviews or other government actions; changes in the assumptions used to make forward-looking statements; and other factors described in the reports the Company files with the Securities and Exchange Commission (the “SEC”), including the factors set out in its annual report on Form 10-K for the fiscal year ended December 31, 2020 , filed with the SEC on February 26, 2021.

Donna Townsell
Director of Investor Relations
Home BancShares, Inc.
(501) 328-4625

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