Renasant Corporation Announces Pricing of $200 Million Offering of Common Stock

Rhea-AI Summary

Renasant (NYSE: RNST) has announced the pricing of a public offering of 6,250,000 shares of its common stock at $32.00 per share, raising an aggregate of $200.0 million. The company has also granted underwriters a 30-day option to purchase up to an additional 937,500 shares. Stephens Inc. is the lead book-running manager, with Raymond James & Associates, Inc. as joint book-running manager. The net proceeds, estimated at $190.0 million, will be used for general corporate purposes, including investments in Renasant Bank and potential strategic acquisitions. The offering is being made through a prospectus supplement and accompanying base prospectus, with details available on the SEC's website.

Positive

• Raised $200 million through public offering of common stock
• Net proceeds of approximately $190 million to support growth and investments
• Potential for additional $30 million if underwriters exercise their option

Negative

• Potential dilution of existing shareholders' equity
• Increased number of outstanding shares may impact earnings per share

Insights

Financial Analyst

Renasant 's $200 million common stock offering is a significant move that warrants attention. The pricing at $32.00 per share for 6,250,000 shares, with an option for an additional 937,500 shares, indicates a strategic capital raise. This offering, expected to net approximately $190 million, will bolster the company's financial position and support its growth initiatives.

The use of proceeds for "general corporate purposes" and potential "future strategic acquisitions" suggests that Renasant is positioning itself for expansion. This could be a response to market opportunities or a need to strengthen its competitive stance. However, investors should note that while this capital infusion provides flexibility, it also results in dilution for existing shareholders.

The involvement of reputable underwriters like Stephens Inc. and Raymond James & Associates lends credibility to the offering. Their participation suggests confidence in Renasant's prospects and may help ensure successful placement of the shares.

From a financial perspective, this move could impact Renasant's capital ratios positively, potentially improving its ability to lend and invest. However, the true value of this offering will depend on how effectively management deploys the new capital. Investors should closely monitor the company's future actions and performance metrics to assess the impact of this capital raise on Renasant's growth trajectory and profitability.

Market Research Analyst

Renasant 's decision to raise $200 million through a common stock offering is noteworthy in the current banking landscape. This move comes at a time when regional banks are under scrutiny following recent sector challenges, making it an interesting barometer of investor confidence in mid-sized financial institutions.

The pricing of $32.00 per share appears to be a 5.6% discount to the previous day's closing price, which is within the typical range for secondary offerings. This moderate discount suggests a balance between attracting new investors and minimizing dilution for existing shareholders.

The market's reception to this offering will be important to watch. A successful placement could signal renewed investor appetite for regional bank stocks, potentially benefiting the sector as a whole. Conversely, any difficulties in placing the shares might indicate lingering concerns about the stability and growth prospects of regional banks.

Renasant's intention to use the proceeds for growth and potential acquisitions is aligned with broader industry trends. Many regional banks are looking to scale up through mergers and acquisitions to better compete with larger national banks and fintechs. This strategy, if executed well, could strengthen Renasant's market position and diversify its revenue streams.

Investors should monitor how this capital raise impacts Renasant's financial metrics, particularly its capital adequacy ratios and return on equity. The key question will be whether the company can generate returns that justify the dilution and maintain its dividend policy while pursuing its growth strategy.

TUPELO, Miss., July 29, 2024 (GLOBE NEWSWIRE) -- Renasant Corporation (NYSE: RNST) (the “Corporation”) today announced the pricing of its public offering of 6,250,000 shares of its common stock (the “common stock”), at a price to the public of $32.00 per share, for an aggregate offering amount of $200.0 million. In addition, the Corporation has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the public offering price, less underwriting discounts.

Stephens Inc. acted as lead book-running manager for the offering, and Raymond James & Associates, Inc. acted as joint book-running manager for the offering. Janney Montgomery Scott LLC, Piper Sandler & Co. and Hovde Group, LLC acted as co-managers for the offering.

The Corporation expects that the net proceeds of the offering will be approximately $190.0 million, assuming no exercise of the underwriters’ option to purchase additional shares, after deducting underwriting discounts and before deducting transaction expenses payable by the Corporation. The Corporation intends to use the net proceeds of the offering for general corporate purposes to support its continued growth, including investments in Renasant Bank and future strategic acquisitions.

The Corporation’s common stock is being offered only by means of a prospectus supplement and accompanying base prospectus. The Corporation has filed a registration statement on Form S-3 (File No. 333-260188) under the Securities Act of 1933, as amended, and a related preliminary prospectus supplement dated July 29, 2024 to the base prospectus contained in the registration statement with the U.S. Securities and Exchange Commission (the “SEC”) for the shares of common stock to which this communication relates and the Corporation will file a final prospectus supplement relating to the shares of common stock. Prospective investors should read the prospectus supplement and base prospectus in the registration statement and other documents the Corporation has filed or will file with the SEC for more complete information about the Corporation and the offering. You may obtain these documents for free by visiting EDGAR on the SEC’s website at http://www.sec.gov. Alternatively, the Corporation, the underwriters or any dealer participating in the offering will arrange to send you electronic copies of the final prospectus supplement, when available, and the accompanying base prospectus if you request it by contacting Stephens Inc., 111 Center Street, Little Rock, Arkansas 72201, Attention: Syndicate, or by calling toll free by telephone at (800) 643-9691 or by email at prospectus@stephens.com.

This press release is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy the common stock of the Corporation, nor shall there be any sale of such securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offering of the common stock is being made only by means of a written prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. The securities being offered have not been approved or disapproved by any regulatory authority, nor has any such authority passed upon the accuracy or adequacy of the prospectus supplement or the shelf registration statement or prospectus relating thereto.

ABOUT RENASANT CORPORATION:

Renasant Corporation is the parent of Renasant Bank, a 120-year-old financial services institution. Renasant has assets of approximately $17.5 billion and operates 185 banking, lending, mortgage and wealth management offices in Mississippi, Tennessee, Alabama, Florida, Georgia, North Carolina and South Carolina.

SAFE HARBOR LANGUAGE:

This press release may contain, or incorporate by reference, statements about Renasant Corporation that constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words and phrases such as “may,” “approximately,” “continue,” “should,” “expects,” “projects,” “anticipates,” “is likely,” “look ahead,” “look forward,” “believes,” “will,” “intends,” “estimates,” “strategy,” “plan,” “could,” “potential,” “possible” and variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements include information about the Corporation’s future financial performance, business strategy, projected plans and objectives and are based on the current beliefs and expectations of management. The Corporation’s management believes these forward-looking statements are reasonable, but they are all inherently subject to significant business, economic and competitive risks and uncertainties, many of which are beyond the Corporation’s control. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Prospective investors are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties and, accordingly, investors should not place undue reliance on these forward-looking statements, which speak only as of the date they are made.

Investors are urged to carefully consider the risks described in the Corporation’s filings with the SEC from time to time, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, which are available at www.renasant.com and the SEC’s website at www.sec.gov. The Corporation undertakes no obligation, and specifically disclaims any obligation, to update or revise forward-looking statements, whether as a result of new information or to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, except as required by federal securities laws.

Contacts:	For Media:		For Financials:
	John S. Oxford		James C. Mabry IV
	Senior Vice President		Executive Vice President
	Chief Marketing Officer		Chief Financial Officer
	(662) 680-1219		(662) 680-1281

FAQ

What is the price per share for Renasant 's (RNST) public offering?

Renasant (RNST) priced its public offering at $32.00 per share.

How many shares of common stock is Renasant (RNST) offering?

Renasant (RNST) is offering 6,250,000 shares of common stock, with an option for underwriters to purchase an additional 937,500 shares.

What is the total value of Renasant 's (RNST) common stock offering?

The aggregate offering amount for Renasant 's (RNST) common stock offering is $200.0 million.

How does Renasant (RNST) plan to use the proceeds from the stock offering?

Renasant (RNST) intends to use the net proceeds for general corporate purposes, including investments in Renasant Bank and potential future strategic acquisitions.