First Citizens Secures $600 Million Capital Injection Amid Stock Volatility

First Citizens BancShares successfully completed a $600 million subordinated debt offering on Friday, even as its equity faced significant selling pressure. The bank issued 5.600% Fixed Rate Reset Subordinated Notes due 2035, with the offering managed by joint lead underwriters BofA Securities and Morgan Stanley.

This capital raise represents a strategic move to bolster the bank’s capital structure. The transaction was formally executed through a third supplemental indenture dated September 5, 2025. The successful placement of these lower-ranking bonds, which stand behind senior debt in the capital structure, demonstrates institutional investor appetite for the bank’s credit despite market headwinds.

Diverging Performance: Debt Success vs. Equity Weakness

While the debt offering found strong demand, the company’s shares experienced a notable decline. First Read more...