Company: AX
Filing Date: 2025-09-17
Form Type: 424B5
Source: 0001299709-25-000159
Chunk: 15

Company: Axos Financial, Inc.
Filing Date: 2025-09-17
Form: 424B5
Chunk 15
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 acceptance could adversely affect the trading prices of SOFR-linked subordinated notes, including the Notes.

SOFR was developed for use in certain U.S. dollar derivatives and other financial contracts as an alternative to the London Interbank Offered Rate (“LIBOR”), in part because it is considered a good representation of general funding conditions in the overnight U.S. Treasury repurchase agreement market. However, as a rate based on transactions secured by U.S. Treasury securities, SOFR does not measure bank-specific credit risk and, as a result, is less likely to correlate with the unsecured short-term funding costs of banks than LIBOR. This may mean that, in the future, market participants may not consider SOFR to be a suitable substitute or successor for all of the purposes for which U.S. dollar LIBOR historically has been used (including, without limitation, as a representation of the unsecured short-term funding costs of banks), which may, in turn, lessen its market acceptance. Any failure of SOFR to maintain market acceptance could adversely affect the return on, value of and market for certain SOFR-linked subordinated notes, including the Notes.

Any Benchmark Replacement may not be the economic equivalent of Three-Month Term SOFR.

Under the Benchmark Transition Provisions of the Notes, if the calculation agent determines that a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to Three-Month Term SOFR, then the interest rate on the Notes during the floating rate period will be determined using the next-available Benchmark Replacement (which may include a related “Benchmark Replacement Adjustment” (as defined under “ Description of Notes ”)). However, the Benchmark Replacement may not be the economic equivalent of Three-Month Term SOFR. For example, “Compounded SOFR” (as defined under “ Description of Notes ”), the first available Benchmark Replacement, is the compounded average of the daily SOFR calculated in arrears, while Three-Month Term SOFR is intended to be a forward-looking rate with a tenor of three months.

The implementation of Benchmark Replacement Conforming Changes could adversely affect the amount of interest that accrues on the Notes and the trading prices for the Notes.

Under the Benchmark Transition Provisions of the Notes, if a particular Benchmark Replacement or Benchmark Replacement Adjustment cannot be determined, then the next-available Benchmark Replacement or Benchmark Replacement Adjustment will apply. These replacement rates and adjustments may be selected or formulated by (i) the Federal Reserve and/or the FRBNY, or a committee officially endorsed or convened by the Federal Reserve and/or the