By Devika Patel
Knoxville, Tenn., Nov. 8 – SunTrust Banks Inc. priced $500 million of depositary shares, which each represent 1/100th of an interest in its 5.125% series H fixed-to-floating rate perpetual preferred stock (Baa3/BB+/BB) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The dividend will have a fixed rate until Dec. 15, 2027 and then will convert to a floating coupon at Libor plus 278.6 basis points. Dividends are payable semiannually on June 15 and Dec. 15 until Dec. 15, 2027, after which the dividend will become payable quarterly on March 15, June 15, Sept. 15 and Dec. 15 of each year.
SunTrust Robinson Humphrey Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC were the bookrunners.
The preferreds are redeemable on any dividend payment date on or after Dec. 15, 2027 at $100,000 per preferred, which is equivalent to $1,000 per depositary share, plus any unpaid dividends.
Proceeds will be used for general corporate purposes, including securities repurchase programs, capital expenditures, working capital, debt or preferreds repayment, reduction or redemption, including the potential redemption of the company’s series E 5.875% perpetual preferreds that are redeemable on any dividend payment date on or after March 15, 2018, and acquisitions.
SunTrust is an Atlanta-based financial services company.
| Issuer: | SunTrust Banks Inc.
|
| Amount: | $500 million, or 500,000 depositary shares
|
| Description: | Depositary shares, which each represent 1/100th of an interest in series H fixed-to-floating perpetual preferred stock
|
| Maturity: | Perpetual
|
| Bookrunners: | SunTrust Robinson Humphrey Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
|
| Co-managers: | Barclays and Citigroup Global Markets Inc.
|
| Dividend: | 5.125%; converts on Dec. 15, 2027 to a floating coupon at Libor plus 278.6 bps
|
| Price: | Par
|
| Call features: | On any dividend payment date on or after Dec. 15, 2027 at $100,000 per preferred, which is equivalent to $1,000 per depositary share, plus any unpaid dividends
|
| Trade date: | Nov. 7
|
| Settlement date: | Nov. 14
|
| Ratings: | Moody’s: Baa3
|
| S&P: BB+
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| Fitch: BB
|
| Distribution: | SEC registered
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