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.
Shareholders of Pinnacle Financial Partners last week voted to declassify the bank holding company's board of directors, a process that will completed two years from now. Investors also approved by very wide margins the other items of business put before them.
Keefe Bruyette & Woods analyst Jefferson Harralson still really likes the prospects for shares of Pinnacle Financial Partners. On the heels of the bank holding company's strong first-quarter earnings report, he has reiterated his 'outperform' rating but lifted his price target to $54 from $48. Less than a month ago, Harralson took his target from $40 to $48, just above where the stock (Ticker: PNFP) now trades. That $48 level is where Stephens analyst Matt Olney now sees Pinnacle heading. His previous target was $45.
POSTDATA: WARRANTY DEEDS