Union Bankshares Corporation Announces Pricing Of Subordinated Notes Offering

RICHMOND, Va., Dec. 01, 2016 (GLOBE NEWSWIRE) -- Union Bankshares Corporation (the "Company"), the parent company of Union Bank & Trust (the "Bank"), today announced the pricing of its public offering of $150 million of its Fixed-to-Floating Rate Subordinated Notes due 2026 (the "Notes").

"Based on strong demand from investors, the company was able to increase the amount of the issue more than originally anticipated," said G. William Beale, chief executive officer of Union Bankshares Corporation.  "I believe the market responded favorably to Union's strategic plan, solid balance sheet and credit quality and therefore the Company was also able to price the Notes at a tighter credit spread to treasuries than on any similarly rated deal this year."

The Notes will initially bear interest at 5.00% per annum, payable semi-annually in arrears commencing on June 15, 2017, with interest commencing on the issue date, to, but excluding, December 15, 2021, and, thereafter, payable quarterly in arrears, at an annual floating rate equal to three-month LIBOR as determined for the applicable quarterly period, plus 3.175%. The Notes will mature on December 15, 2026. The Notes have been offered to the public at par.

The Company intends to use the net proceeds of the offering to repay amounts outstanding under a line of credit, to contribute capital to its subsidiary bank, Union Bank & Trust, and for general corporate purposes.

Sandler O'Neill + Partners, L.P. acted as the sole book-running manager for the Notes offering.

The Notes will be issued pursuant to an effective shelf registration statement (File No. 333-198710) (including base prospectus) and a preliminary prospectus supplement filed with the Securities and Exchange Commission ("SEC") and a final prospectus supplement to be filed with the SEC. The securities may be offered only by means of a prospectus supplement and accompanying base prospectus.

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