The leaders of Pinnacle Financial Partners expect to issue $50 million in debt to help finance the acquisitions of CapitalMark Bank & Trust in Chattanooga and Magna Bank in Memphis as well as pay off its loan with U.S. Bank. That number is down from two weeks ago, when bank execs said they had started talks about issuing up to $60 million in subordinated debt.
Also of note from Pinnacle's latest filing: President and CEO Terry Turner first talked about a deal with CapitalMark boss Craig Holley way back in February of last year. But it took until early this year — starting with word that CapitalMark's 2014's profits would fall short of previous estimates — for the conversation to get down to terms and price. (Search for "February 10" to follow the timeline.)
In the wake of Pinnacle Financial Partners' big Memphis news, Kevin Reynolds at Wunderlich Securities has upgraded shares of the largest bank headquartered in Nashville to 'buy' from 'hold.' Reynolds, who earlier this month hiked his Pinnacle price targe to $48 from $40, now has the stock climbing to $54 in the coming year. Pinnacle (Ticker: PNFP) finished Wednesday trading at $48.60.
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