By James McCandless
San Antonio, July 24 – M&T Bank Corp. priced a $400 million offering of $1,000-par series G fixed-rate reset non-cumulative preferred stock (Baa2/BBB-/BB+) at par with an initial dividend of 5%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal, announced on Tuesday, matched the initial $400 million offering size and came in above talk for a dividend in the 4% area.
Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC are the joint bookrunners.
The preferreds are redeemable on any dividend payment date on Aug. 1, 2024. Prior to that, they are redeemable within 90 days after a regulatory capital treatment event.
The dividend is fixed for five years, then on Aug. 1, 2024 resets at a rate of Treasuries plus 317.4 basis points.
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-based banking services holding company.
| Issuer: | M&T Bank Corp.
|
| Description: | Series G fixed-rate reset non-cumulative preferred stock
|
| Amount: | $400 million, or 400,000 shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and UBS Securities LLC
|
| Co-manager: | Sandler O’Neill + Partners, LP
|
| Dividend: | 5% initially; beginning Aug. 1, 2024 and every five years thereafter resets to a rate equal to Treasuries plus 317.4 bps
|
| Price: | Par of $1,000
|
| Call: | On or after Aug. 1, 2024; prior to that, within 90 days after a regulatory capital treatment event
|
| Pricing date: | July 23
|
| Settlement date: | July 30
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BB+
|
| Distribution: | SEC registered
|
| Listing: | None
|
| Talk: | 4% area
|
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