By Cristal Cody
Tupelo, Miss., April 22 – KeyCorp priced an upsized $450 million of 5.625% $25-par series G non-cumulative redeemable preferred shares (Baa3/BB+/BB) on Monday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The company sold 18 million depositary shares in the offering. Each depositary share represents 1/40th of a share of the series G preferred stock.
The preferreds priced on top of guidance and came tighter than initial talk in the 5.75% to 5.875% area. The deal was upsized from $200 million.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC were the bookrunners.
The preferreds are redeemable on Sept. 15, 2024 or any dividend payment date thereafter at par.
KeyCorp plans to apply to list the preferreds on the New York Stock Exchange under the symbol “KEYPrK.”
Proceeds from the deal will be used for general corporate purposes.
Cleveland-based KeyCorp is a financial services company and parent company of KeyBank.
| Issuer: | KeyCorp
|
| Amount: | $450 million, 18 million depositary shares
|
| Description: | Series G non-cumulative redeemable preferred shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, KeyBanc Capital Markets LLC, UBS Securities LLC and Wells Fargo Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC and RBC Capital Markets, LLC
|
| Dividend: | 5.625%
|
| Price: | Par of $25.00 per depositary share
|
| Yield: | 5.625%
|
| Call features: | Sept. 15, 2024 or any dividend payment date thereafter at par
|
| Trade date: | April 22
|
| Settlement date: | April 29
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
|
| Fitch: BB
|
| Distribution: | SEC registered
|
| Price guidance: | 5.625%; initial talk at 5.75%-5.875% area
|
| Expected listing: | NYSE: KEYPrK
|
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