Bulletin: Cadence Bank's Planned Sale Of Insurance Brokerage Subsidiary Will Dilute Revenue Diversity But Benefit Other Metrics

NEW YORK (S&P Global Ratings) Oct. 25, 2023--S&P Global Ratings today said that some of the near-term financial benefits from Cadence Bank's (BBB+/Stable/--) planned sale of its insurance brokerage subsidiary roughly offset the slimmer revenue diversity. On Oct. 24, 2023, Cadence announced that it entered into a definitive agreement to sell Cadence Insurance to Arthur J. Gallagher, which will become Cadence's insurance brokerage partner, in an all-cash transaction for a deal value of approximately $904 million. Management expects the deal to close in fourth-quarter 2023, subject to customary closing conditions. Cadence expects the deal to generate $650 million in after-tax cash proceeds. We believe this transaction will enable Cadence to focus on its core banking business, repay wholesale borrowings, and

...October 25, 2023 NEW YORK (S&P Global Ratings) Oct. 25, 2023--S&P Global Ratings today said that some of the near-term financial benefits from Cadence Bank's (###+/Stable/--) planned sale of its insurance brokerage subsidiary roughly offset the slimmer revenue diversity. On Oct. 24, 2023, Cadence announced that it entered into a definitive agreement to sell Cadence Insurance to Arthur J. Gallagher, which will become Cadence's insurance brokerage partner, in an all-cash transaction for a deal value of approximately $904 million. Management expects the deal to close in fourth-quarter 2023, subject to customary closing conditions. Cadence expects the deal to generate $650 million in after-tax cash proceeds. We believe this transaction will enable Cadence to focus on its core banking business, repay wholesale borrowings, and redeploy $1.5 billion of low-yielding securities portfolio into securities with market yields. The bank expects this transaction to raise the common equity Tier 1 ratio...

Bulletin