By James McCandless
San Antonio, July 23 – KeyCorp priced $425 million of $25-par series F fixed-rate perpetual non-cumulative preferred stock with an initial dividend of 5.65% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The deal was announced Monday morning.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., UBS Securities LLC and Wells Fargo Securities, LLC are the joint bookrunners.
Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC are co-managers.
There is no greenshoe.
The preferreds are redeemable after five years. Prior to that, they are redeemable within 90 days of a regulatory capital treatment event.
KeyCorp plans to use the proceeds for general corporate purposes, which may include working capital, capital expenditures, investments in or loans to its subsidiaries, refinancing of outstanding indebtedness, refinancing of outstanding capital securities, repurchases of common or preferred stock, dividends, potential future acquisitions and satisfaction of other obligations.
The company plans to list the preferreds on the New York Stock Exchange under the symbol “KEYPrJ.”
KeyCorp is a Cleveland-based financial services company.
| Issuer: | KeyCorp
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| Description: | Fixed-rate perpetual non-cumulative preferred stock, series F
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| Amount: | $425 million, or 17 million shares
|
| Maturity: | Perpetual
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| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., UBS Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC
|
| Dividend: | 5.65%
|
| Price: | Par of $25
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| Yield: | 5.65%
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| Call: | On or after Dec. 15, 2023 at par; prior to that, within 90 days of a regulatory capital treatment event
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| Pricing date: | July 23
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| Settlement date: | July 30
|
| Ratings: | Moody’s: Baa3 (expected)
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| S&P: BB+ (expected)
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| Fitch: BB (expected)
|
| Distribution: | SEC Registered
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| Listing: | NYSE: KEYPrJ
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