Company: FRME
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0000712534-25-000197
Chunk: 176

Company: FIRST MERCHANTS CORP
Filing Date: 2025-10-30
Form: 10-Q
Item: Part I, Item 8
Chunk 176
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 the Senior Debt and Subordinated Debt remained fixed for the first ten (10) years and converted to floating on October 30, 2023 at which time the optional redemption provisions of both instruments became effective. During the nine months ended September 30, 2024, the Corporation exercised its option to redeem $65.0 million in principal, fully repaying the Subordinated Debt on the scheduled interest payment dates.  As of December 31, 2024, the Senior Debt had an annual floating rate equal to three-month CME Term SOFR, plus the 0.26161 percent spread adjustment plus 2.345 percent, resulting in an interest rate of 7.18 percent.  The Senior Debt agreement contained certain customary representations and warranties and financial and negative covenants.  As of December 31, 2024 the Corporation was in compliance with these covenants.  During the third quarter of 2025, the Corporation exercised its rights to redeem the $5.0 million in principal and paid the Senior Debt on the scheduled interest payment date.  No principal amount remains outstanding related to the Senior Debt as of September 30, 2025.•Level One Bancorp, Inc. ("Level One") Subordinated Notes.  On April 1, 2022, the Corporation assumed certain subordinated notes in conjunction with its acquisition of Level One.  The $30.0 million of subordinated notes issued on December 18, 2019 had a fixed interest rate of 4.75 percent per annum, payable semiannually through December 18, 2024.  The notes had a floating interest rate equal to the of three-month CME Term SOFR plus 3.11 percent, payable quarterly, after December 18, 2024 through maturity.  The Corporation had the option to redeem any or all of the subordinated notes without premium or penalty any time after December 18, 2024 or upon the occurrence of a tier 2 capital event or tax event.  During the first quarter of 2025, the Corporation exercised its rights to redeem $30.0 million in principal and paid the debt in full on the scheduled interest payment date. The redemption was permitted under the optional redemption provisions of the subordinated notes. No principal amount remains outstanding related to the subordinated notes as of September 30, 2025. •Other Borrowings.   On April 1, 2022, the Corporation acquired a secured borrowing in