By Stephanie N. Rotondo
Seattle, Oct. 25 – M&T Bank Corp. priced $500 million of 5.125% $1,000-par series F fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa2/BBB-/BB+) on Tuesday, the company said in an FWP filed with the Securities and Exchange Commission.
Price talk was 5.25%.
J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are the joint bookrunners.
The preferreds will be issued as depositary shares representing a 1/10th interest.
When declared, dividends will be fixed and payable semiannually through Nov. 1, 2026. After that date, the rate will begin to float at Libor plus 352 basis points and will be paid on a quarterly basis.
The preferreds become redeemable on or after Nov. 1, 2026 or within 90 days of a regulatory capital treatment event at par plus accrued dividends.
The securities will not be listed.
The Buffalo, N.Y.-based bank plans to use the proceeds for general corporate purposes, which may include the redemption of the 6.875% series D noncumulative perpetual preferred stock.
| Issuer: | M&T Bank Corp.
|
| Securities: | Series F fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $500 million
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, RBC Capital Markets, UBS Securities LLC
|
| Dividend: | Fixed at 5.125% until Nov. 1, 2026, then floating at Libor plus 352 bps
|
| Price: | Par of $1,000
|
| Talk: | 5.25%
|
| Call options: | On or after Nov. 1, 2026 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 28
|
| Expected ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BB+
|
| Cusip: | 55261FAH7
|
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