Huntington Bancshares offers series E fixed-to-floating non-cumulative preferred stock

By Abigail W. Adams

Portland, Me, Feb. 27 – Huntington Bancshares Inc. announced an offering of series E fixed-to-floating rate non-cumulative perpetual preferred stock prior to the market open Tuesday.

The preferred stock will be sold as depositary shares with a liquidation preference of $1,000 per share, representing a 1/100th interest in the series E preferred stock, according to the preliminary prospectus.

Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Huntington Capital Markets are the joint-bookrunners for the offering.

Dividends will be payable quarterly upon the authorization of the board of directors. The depositary shares will carry a fixed dividend until April 15, 2023.

It will then switch to a floating rate of Libor plus a spread, according to the preliminary prospectus.

The preferred stock is non-callable until April 15, 2023 and then callable within 90 days of a regulatory capital treatment event. There are no put options. There is takeover protection.

The preferred stock is non-cumulative, but there is a dividend stopper, which prevents payment of dividends on common stock or junior securities for one dividend period, if dividends are not paid on the series E preferred stock, according to the preliminary prospectus.

Proceeds will be used for general corporate purposes, which may include supporting the asset growth of subsidiaries.

Huntington Bancshares is a Columbus, Ohio-based diversified regional bank holding company.

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