KeyCorp offers $525 million $1,000-par fixed-to-floating noncumulative perpetual preferred stock

By Stephanie N. Rotondo

Seattle, Sept. 6 – KeyCorp is offering $525 million of $1,000-par series D fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa3/BB+), according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

The preferreds will be issued as depositary shares representing a 1/25th interest.

Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC and KeyBanc Capital Markets are the joint bookrunning managers.

Dividends will be payable on a quarterly basis. The dividend will be fixed through Sept. 15, 2026. After that, the rate will float at Libor plus a spread.

The preferreds become redeemable on or after Sept. 15, 2026 at par plus accrued dividends or in whole within 90 days of a regulatory capital treatment event.

Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, investments in or loans to subsidiaries, refinancing of outstanding debt or capital securities, share repurchases, dividends, funding potential acquisitions and the satisfaction of other obligations.

KeyCorp is a Cleveland-based bank holding company.

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