Company: FRME
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0000712534-25-000117
Chunk: 155

Company: FIRST MERCHANTS CORP
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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2028 in the aggregate principal amount of $65 million (the “Subordinated Debt”).  The interest rate on the Senior Debt and Subordinated Debt remained fixed for the first ten (10) years and converted to floating on October 30, 2023.  As of March 31, 2025 and December 31, 2024, the Senior Debt has an annual floating rate equal to three-month CME Term SOFR, plus the 0.26161 percent spread adjustment plus 2.345 percent.  The interest rate on the Senior Debt was 6.90 percent and 7.18 percent as of March 31, 2025 and December 31, 2024, respectively.  The Corporation had an option to redeem the Subordinated Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Subordinated Notes, plus accrued and unpaid interest to the date of the redemption.  The option of redemption was subject to the approval of the Federal Reserve Board.  The Corporation has an option to redeem the Senior Debt in whole or in part at a redemption price equal to 100 percent of the principal amount of the redeemed Senior Notes, plus accrued and unpaid interest to the date of the redemption; provided, however, that no Subordinated Notes (as defined in the Issuing and Paying Agency Agreement) may remain outstanding subsequent to any early redemption of Senior Notes.  The Subordinated Debt and the Senior Debt options to redeem began with the interest payment date on October 30, 2023, or on any scheduled interest payment date thereafter.  During the first quarter of 2024, the Corporation exercised its rights to redeem $40.0 million in principal and paid the debt in full on the scheduled interest payment date.  Additionally, in the second quarter of 2024, the Corporation exercised its rights to redeem the remaining $25.0 million in principal and paid the debt on the scheduled interest payment date.  Both redemptions were permitted under the optional redemptions provisions of the Subordinated Note Certificate representing the Subordinated Debt.  The Senior Debt agreement contains certain customary representations and warranties and financial and negative covenants.  As of March 31, 2025 and December 31, 2024 the Corporation was in compliance with these covenants.•Level One Subordinated Notes.  On April 1, 2022, the Corporation assumed certain subordinated notes in conjunction with its acquisition of Level