By Andrea Heisinger
New York, Dec. 15 - Huntington Bancshares Inc. priced $300 million of 10-year subordinated notes at par on Wednesday to yield 7%, a market source away from the sale said.
The notes were talked at a yield in the 7.125% area and priced at the tight end of that talk.
The non-callable notes (Baa3/BBB-/BBB+) have a spread of 344.9 basis points over Treasuries.
Goldman Sachs & Co. was the bookrunner.
Joint lead managers were Morgan Stanley & Co. Inc. and Sandler O'Neill & Partners LP.
Barclays Capital Inc. was the co-manager.
The proceeds are being used to repurchase $1.4 billion of series B fixed-rate cumulative perpetual preferred stock issued to the U.S. Department of Treasury under the Troubled Asset Relief Capital Purchase Program.
Huntington has also sold $920 million of common stock.
The bank holding company is based in Columbus, Ohio.
| Issuer: | Huntington Bancshares Inc.
|
| Issue: | Subordinated notes
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2020
|
| Bookrunner: | Goldman Sachs & Co.
|
| Joint lead managers: | Morgan Stanley & Co. Inc., Sandler O'Neill & Partners LP
|
| Co-manager: | Barclays Capital Inc.
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread: | Treasuries plus 344.9 bps
|
| Call: | Non-callable
|
| Trade date: | Dec. 15
|
| Settlement date: | Dec. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB+
|
| Price talk: | 7.125% area yield
|
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