By Stephanie N. Rotondo
Seattle, Sept. 7 – KeyCorp priced $525 million of 5% $1,000-par series D fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa3/BB+/BB), according to an FWP 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 were 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 360.6 basis points.
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.
| Issuer: | KeyCorp
|
| Securities: | Series D fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $525 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, Goldman Sachs & Co., J.P. Morgan Securities LLC, KeyBanc Capital Markets
|
| Co-managers: | Academy Securities Inc., CastleOak Securities LP
|
| Dividend: | Fixed at 5% until Sept. 15, 2026, then floating at Libor plus 360.6 bps
|
| Price: | Par of $1,000
|
| Talk: | 5.125%
|
| Call options: | On or after Sept. 15, 2026 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Sept. 6
|
| Settlement date: | Sept. 9
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB
|
| Cusip: | 493267AK4
|
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