Business Context and Reporting Period
This Form 8-K filing by Midland States Bancorp, Inc. (MSBI) reports a corporate event dated August 27, 2025. The Company, incorporated in Illinois, notified holders of its Fixed-to-Floating Rate Subordinated Notes due September 30, 2029, of an upcoming redemption.
Key Financial Metrics
- Debt Instrument: Fixed-to-Floating Rate Subordinated Notes due September 30, 2029.
- Principal Amount: $50,750,000.
- Current Interest Rate: 7.91%.
- Annual Interest Expense: Approximately $4.0 million.
- Redemption Price: 100% of aggregate principal amount plus accrued and unpaid interest to the redemption date.
Material Changes
The Company announced the redemption of all outstanding Subordinated Notes. This action will eliminate the associated annual interest expense of approximately $4.0 million and reduce the Company's outstanding debt obligations by $50.75 million upon the redemption date.
Guidance, Outlook, and Risks
Redemption Details: The redemption is scheduled for September 30, 2025. The Company will pay 100% of the principal plus accrued interest up to, but excluding, the redemption date.
Risks and Contingencies: The filing includes standard forward-looking statements regarding the planned redemption. Risks cited include interest rate fluctuations, general economic and political conditions, changes in financial markets, and potential changes in business plans. The Company disclaims any obligation to update these statements.
Investor Verification Checklist
- Confirm the exact redemption date of September 30, 2025.
- Verify the final accrued interest calculation as of the redemption date.
- Review the Company's most recent periodic reports for updated liquidity positions following this debt reduction.
- Assess the impact of removing $4.0 million in annual interest expense on future net income projections.