M&T Bank talks $400 million series I non-cumulative preferred stock in 3.875% area

By Cristal Cody

Chicago, Aug. 10 – M&T Bank Corp. is in the market with an offering of series I fixed-rate reset non-cumulative preferred stock, according to a 424B5 filing with the Securities and Exchange Commission.

A market source expected the preferreds sized at $400 million with a dividend in the 3.875% area.

Dividends will be payable semiannually.

The rate will reset to a floating rate in September 2026 and every five years thereafter.

The preferreds will have $1,000 per depositary share liquidation preference.

The preferreds can be redeemed on any dividend payment starting with the first reset date, or within 90 days of a regulatory capital event. In each case, the shares would be redeemed at par plus any unpaid dividends.

RBC Capital Markets, LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC are joint bookrunners.

Hodgson Russ LLP is counsel for the issuer.

Proceeds will be used for general corporate purposes.

The company does not plan to list the preferreds on any securities exchange.

M&T Bank is a Buffalo, N.Y.-based banking services holding company.

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