KeyCorp’s 6.125% fixed-to-floating preferreds lists on NYSE

By Colin Hanner

Chicago, Dec. 15 – KeyCorp’s $500 million of 6.125% series E fixed-to-floating rate noncumulative perpetual preferred stock listed on the New York Stock Exchange on Thursday.

The ticker symbol is “KEYPI.” It had been trading under the temporary symbol “KYYPP.”

The new issue priced Dec. 5.

Price talk was initially 6.25% but was lowered to 6.125%. The deal was initially slated to be $250 million but was upsized to $500 million.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co. and KeyBanc Capital Markets were the joint bookrunners.

Dividends are fixed through Dec. 15, 2026. At that point, the securities will float at Libor plus 389.2 basis points.

The issue becomes redeemable on or after Dec. 15, 2026 at par plus accrued dividends. The preferreds can also be redeemed in whole upon a regulatory capital treatment event.

The Cleveland-based bank holding company will use the proceeds for general corporate purposes, which may include, without limitation, working capital, capital expenditures, investments in or loans to subsidiaries, refinancing of outstanding debt, refinancing of outstanding capital securities, share repurchases – including repurchases of common stock or preferred stock – the potential redemption of outstanding $350 million aggregate liquidation preference of series C fixed-to-floating rate perpetual noncumulative preferred stock – which becomes redeemable on Feb. 15, 2017 – dividends, funding potential future acquisitions and satisfaction of other obligations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.