NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) releases research report entitled “Comment on Capital Bank Financial Corp. Merger with First Horizon National Corp.”
The report makes the following key points:
- Capital Bank Financial Corp. (NASDAQ:CBF) and its subsidiary Capital Bank Corporation, announced a definitive agreement to merge with First Horizon National Corp. (NYSE:FHN) (First Horizon), the holding company and parent of First Tennessee Bank National Association.
- The deal, valued at $2.2 billion, is expected to close during the fourth quarter of 2017 and would result in the creation of the fourth largest regional bank in the Southeast with approximately $40 billion in assets, $32 billion in deposits, and $27 billion in loans, based on financials as of March 31, 2017.
- In October of 2016, KBRA affirmed the senior unsecured debt rating of BBB+, subordinated debt rating of BBB, and short-term debt rating of K2 for Capital Bank Financial Corp. KBRA also affirmed the deposit and senior unsecured debt ratings of A-, subordinated debt rating of BBB+, and short-term debt and deposit ratings of K2 for Capital Bank Financial Corp.’s subsidiary, Capital Bank Corporation. The outlook on all long-term ratings is stable.
- First Horizon National Corp. appears to have sound overall financial condition. Based on fourth quarter 2016 financials, KBRA’s Subscription Rating Service (SRS) rated First Horizon National Corp. a B on the financial strength rating (FSR) scale.
- Ratings of Capital Bank Financial Corp. and its subsidiary bank will likely be impacted when the merger closes, given that Capital Bank Financial Corp. and Capital Bank Corporation will merge into First Horizon National Corp. Potential rating actions include withdrawal of all ratings, partial withdrawal of ratings, or maintaining existing ratings for Capital Bank Corporation.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology published on February 19, 2016.
Please click here to view the report.
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