By Andrea Heisinger
Omaha, Feb. 28 - The Colonial BancGroup, Inc. priced $250 million 8.875% 30-year subordinated notes Thursday at par of $25, an informed source said.
The notes (Baa3/BBB-) are non-callable for five years.
They priced in line with talk that was in the area of 8.875%.
Bookrunners were Citigroup Global Markets Inc., Lehman Brothers Inc., Morgan Stanley & Co. Inc., UBS Investment Bank and Wachovia Capital Securities LLC.
Proceeds will be used for general corporate purposes, which may include investment in the company's subsidiaries.
The holding company for Colonial Bank, NA is based in Montgomery, Ala.
Issuer: | The Colonial BancGroup, Inc.
|
Issue: | Subordinated notes
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Amount: | $250 million
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Maturity: | March 15, 2038
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Bookrunners: | Citigroup Global Markets Inc., Lehman Brothers Inc., Morgan Stanley & Co. Inc., UBS Investment Bank, Wachovia Capital Securities LLC
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Coupon: | 8.875%
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Price: | Par of $25
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Yield: | 8.875%
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Call: | Callable beginning March 15, 2013
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Trade date: | Feb. 28
|
Settlement date: | March 6
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Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
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Price talk: | 8.875% area
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