By Cristal Cody
Chicago, Aug. 10 – M&T Bank Corp. sold an upsized $500 million offering of 3.5% series I fixed-rate reset non-cumulative preferred stock (Baa2/BBB-/BBB-) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
Earlier in the day a source had noted that the preferreds were being marketed at $400 million with a dividend in the 3.875% area.
Dividends will be payable semiannually.
The rate will reset to a floating rate of Treasuries plus 267.9 basis points 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 date 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.
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.
| Issuer: | M&T Bank Corp.
|
| Issue: | Series I fixed-rate reset non-cumulative preferred stock
|
| Amount: | $500 million, or 500,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | RBC Capital Markets LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC
|
| Counsel to issuer: | Hodgson Russ LLP
|
| Dividend: | 3.5% initial rate; resets starting Sept. 1, 2026 at Treasuries plus 267.9 bps and every five years thereafter
|
| Price: | Par of $1,000
|
| Call features: | On any semiannual dividend payment date starting Sept. 1, 2026, or within 90 days of a regulatory capital event
|
| Trade date: | Aug. 10
|
| Settlement date: | Aug. 17
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price talk: | $400 million; dividend in 3.875% area
|
| Cusip: | 55261FAN4
|
|
|
© 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.
