Valley National Bancorp completed its offering of $115 million aggregate principal amount of 5.25% fixed- to floating-rate subordinated notes due June 15, 2030.

The net proceeds to the company from the sale of the notes were approximately $113.2 million, after giving effect to the underwriting discount of 1.00% and estimated expenses of the offering. Valley National intends to use the net proceeds for general corporate purposes and investments in its wholly owned subsidiary Valley National Bank.

Interest on the notes will accrue at a fixed rate equal to 5.25% per annum from the original issue date to, but excluding, June 15, 2025. Interest will be paid semiannually in arrears on June 15 and Dec. 15 of each year, starting Dec. 15.

From and including June 15, 2025, interest on the notes will accrue at a floating-rate per annum equal to a benchmark rate, which is expected to be the three-month term secured overnight financing rate, plus a spread of 514 basis points. Interest will be paid quarterly in arrears on March 15, June 15, Sept. 15 and Dec. 15 of each year, starting Sept. 15, 2025.

Keefe Bruyette & Woods Inc., Morgan Stanley & Co. LLC and Piper Sandler & Co. were the joint book-running managers for the offering.