By James McCandless
San Antonio, Oct. 30 – Northern Trust Corp. priced an upsized $400 million offering of $25-par series E non-cumulative perpetual preferred stock (Baa1/BBB+/BBB) at par with a dividend at 4.7%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal, announced Tuesday morning, was upsized from an initial $250 million and came in on the tight side of talk for a dividend in the 4.875% area.
Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
The preferreds are redeemable on or after Jan. 1, 2025 at par. Prior to that, the preferreds are redeemable after a regulatory capital treatment event at par.
Northern Trust plans to use the proceeds to redeem outstanding shares of its series C preferred stock.
The company plans to list the preferreds on the Nasdaq under the symbol “NTRSO.”
Northern Trust is a Chicago-based financial holding company.
| Issuer: | Northern Trust Corp.
|
| Description: | Series E non-cumulative perpetual preferred stock
|
| Amount: | $400 million, or 16 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, UBS Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Academy Securities, Inc., Loop Capital Markets LLC and Williams Capital Group, LP
|
| Dividend: | 4.7%
|
| Price: | Par of $25.00
|
| Yield: | 4.7%
|
| Call: | On or after Jan. 1, 2025 at par; prior to that, after a regulatory capital treatment event at par
|
| Pricing date: | Oct. 29
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Price talk: | 4.875% area
|
| Listing: | Nasdaq: NTRSO
|
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