A team consisting of BT Atkinson and Brittany McIntosh, with assistance from Neil Grayson, Ricky Davis, and paralegal Mary Campbell, represented CapStar Financial Holdings, Inc. in the completion of a private placement of $30 million of 5.25% fixed-to-floating rate subordinated notes (The Notes) due 2030 to certain qualified institutional buyers and accredited investors.

The Notes are unsecured and have a 10-year term, maturing June 30, 2030, and will bear interest at a fixed annual rate of 5.25%, payable semi-annually in arrears, for the first five years of the term. Thereafter, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate (which is expected to be Three-Month Term SOFR) plus 513 basis points, payable quarterly in arrears.

The Notes have been structured to qualify as Tier 2 capital for CapStar for regulatory capital purposes. CapStar, headquartered in Nashville, Tennessee, intends to use the net proceeds of the offering to fund cash consideration for CapStar Bank’s pending mergers with The First National Bank of Manchester