By James McCandless
San Antonio, May 27 – Huntington Bancshares Inc. priced a $500 million offering of $1,000-par series F non-cumulative perpetual preferred stock (Baa3/BB+/BB+) at par with a dividend of 5.625%, according to an FWP filing with the Securities and Exchange Commission and a market source.
There is no greenshoe.
The deal was announced Wednesday morning and talk had it in the 6% area.
BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, UBS Securities LLC and Huntington Securities, Inc. are the joint bookrunners.
Dividends are payable on Jan. 15, April 15, July 15 and Oct. 15, starting on Oct. 15, 2020.
On Oct. 15, 2030, the dividend resets to a rate of the 10-year Treasury plus 494.5 basis points.
The preferreds are redeemable on or after Oct. 15, 2030 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event.
Huntington plans to use the proceeds for general corporate purposes, which may include, among other things, supporting asset growth of its subsidiaries.
The company does not plan to list the preferreds on any securities exchange.
Huntington is a Columbus, Ohio-based bank holding company.
| Issuer: | Huntington Bancshares Inc.
|
| Description: | Series F non-cumulative perpetual preferred stock
|
| Amount: | $500 million, or 500,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, UBS Securities LLC and Huntington Securities, Inc.
|
| Co-managers: | MUFG, Raymond James & Associates, Inc. and Robert W. Baird & Co. Inc.
|
| Dividend: | 5.625% until Oct. 15, 2020, then resets to a rate of the 10-year Treasury plus 494.5 bps
|
| Price: | Par of $1,000
|
| Call: | On or after Oct. 15, 2020 at par; prior to that, within 90 days after a regulatory capital treatment event
|
| Pricing date: | May 27
|
| Settlement date: | June 3
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 6% area
|
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