Note 12. Subordinated Debt and Other borrowings

Pinnacle Financial has four wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities. Additionally, Pinnacle Financial has entered into certain other subordinated debt agreements and a revolving credit facility as outlined below and fully described in its Annual Report on Form 10-K (in thousands):

Name	Date Established	Maturity	Total Debt Outstanding			Interest Rate at March 31, 2017			Coupon Structure
Trust preferred securities
Trust I	December 29, 2003	December 30, 2033	$	10,310			3.95	%	LIBOR + 2.80%
Trust II	September 15, 2005	September 30, 2035		20,619			2.55	%	LIBOR + 1.40%
Trust III	September 7, 2006	September 30, 2036		20,619			2.80	%	LIBOR + 1.65%
Trust IV	October 31, 2007	September 30, 2037		30,928			3.98	%	LIBOR + 2.85%

Subordinated Debt
Pinnacle Bank Subordinated Notes	July 30, 2015	July 30, 2025		60,000			4.875	%	Fixed⁽¹⁾
Pinnacle Bank Subordinated Notes	March 10, 2016	July 30, 2025		70,000			4.875	%	Fixed⁽¹⁾
Avenue Subordinated Notes	December 29, 2014	December 29, 2024		20,000			6.750	%	Fixed⁽²⁾
Pinnacle Financial Subordinated Notes	November 16, 2016	November 16, 2026		120,000			5.250	%	Fixed⁽³⁾

Other Borrowings
Revolving credit facility⁽⁴⁾	March 29, 2016	March 27, 2018		-			-

Debt issuance costs and fair value adjustments				(1,627	)
Total subordinated debt and other borrowings			$	350,849

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⁽¹⁾ Migrates to three month LIBOR + 3.128% beginning July 30, 2020 through the end of the term.

⁽²⁾ Migrates to three month LIBOR + 4.95% beginning January 1, 2020 through the end of the term.

⁽³⁾ Migrates to three month LIBOR + 3.884% beginning November 16, 2021 through the end of the term.

⁽⁴⁾ Borrowing capacity on the revolving credit facility is $75.0 million. At March 31, 2017, there was no outstanding balance under this facility. This credit facility was recently amended to extend the maturity date to March 27, 2018.

Additionally, upon consummation of its proposed merger with BNC, Pinnacle Financial will assume BNC's obligations under its outstanding $60.0 million principal amount of subordinated notes issued in September 2014 that mature in October 2024. These notes bear interest at a rate of 5.5% per annum until September 30, 2019 and may not be repaid prior to that date. Beginning on October 1, 2019, if not redeemed on that date, these notes will bear interest at a floating rate equal to the three-month LIBOR determined on the determination date of the applicable interest period plus 359 basis points. Upon consummation of the proposed merger with BNC, Pinnacle Financial will also assume BNC's obligations under its outstanding subordinated notes with a principal balance of $10.6 million as of December 31, 2016. These notes bear interest at a variable rate of 30-day LIBOR plus 5.00% per annum, with a floor of 5.50% and a cap of 9.50%, and have a maturity date of October 15, 2023. The interest rate for these subordinated notes was 5.61% at December 31, 2016. The $50.5 million in aggregate principal amount of subordinated debentures issued by trust affiliates of BNC in connection with the issuance of trust preferred securities will also be assumed in connection with Pinnacle Financial's proposed merger with BNC.

Upon consummation of the proposed merger with BNC, Pinnacle Financial expects that its total assets will exceed $15.0 billion, as a result of a merger which would cause the subordinated debentures Pinnacle Financial and BNC have issued in connection with prior trust preferred securities offerings to cease to qualify as Tier 1 capital under applicable banking regulations. Though these securities would no longer qualify as Tier 1 capital from and after the closing of the merger, Pinnacle Financial believes these subordinated debentures would continue to qualify as Tier 2 capital.