M&T Bank talks $400 million reset non-cumulative preferreds at initial 4% area dividend

By James McCandless

San Antonio, July 23 – M&T Bank Corp. plans to price a $400 million offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock with an initial dividend in the 4% area, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

Morgan Stanley & Co. LLC, RBC Capital Markets LLC and UBS Securities LLC are the joint bookrunners.

The co-manager is Sandler O’Neill + Partners, LP.

The preferreds are redeemable on any dividend payment date beginning in August 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.

The dividend is fixed for five years, then resets to a rate of Treasuries plus a spread.

M&T Bank plans to use the proceeds for general corporate purposes, which may include redeeming all or a portion of its series A and series C preferred stock.

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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