By Stephanie N. Rotondo
Phoenix, Nov. 4 – SunTrust Banks Inc. priced $500 million of 5.625% $1,000-par series F fixed-to-floating rate noncumulative perpetual preferred stock, according to a market source on Tuesday.
The preferreds will be issued as depositary shares representing a 1/100th interest.
Goldman Sachs & Co., Morgan Stanley & Co. LLC and SunTrust Robinson Humphrey Inc. are the joint bookrunners.
The dividend will be fixed until Dec. 15, 2019 and will be payable on a semiannual basis. After that date, the dividend will float at Libor plus 386 basis points and will be paid on the 15th day of March, June, September and December.
On or after Dec. 15, 2019, the Atlanta-based bank can redeem the preferreds at par plus accrued dividends.
The company can also redeem the preferreds within 90 days of a regulatory capital treatment event.
Proceeds will be used for general corporate purposes.
| Issuer: | SunTrust Banks Inc.
|
| Securities: | Series F fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $500 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Goldman Sachs & Co., Morgan Stanley & Co. LLC, SunTrust Robinson Humphrey Inc.
|
| Co-managers: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, UBS Securities LLC
|
| Dividend: | Fixed at 5.625% until Dec. 15, 2019, then floating at Libor plus 386 bps
|
| Price: | Par of $1,000
|
| Yield: | 5.625%
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| Talk: | 5.75% to 5.875%
|
| Call options: | On or after Dec. 15, 2019 or within 90 days of a regulatory treatment event at par plus accrued dividends
|
| Pricing date: | Nov. 4
|
| Settlement date: | Nov. 7
|
| Cusip: | 867914BJ1
|
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