Published on 12/6/2007 in the Prospect News Investment Grade Daily.
New Issue: Susquehanna prices split-rated $110 million 9.375% capital securities due 2057 at par of $25
By Andrea Heisinger
Omaha, Dec. 6 - Susquehanna Capital I priced an upsized $110 million, or 4.4 million, 9.375% capital securities maturing Dec. 12, 2057, according to a FWP filing with the Securities and Exchange Commission.
The issue was originally $100 million, or 4 million securities.
The split-rated securities (Baa2/BB+) were priced at par of $25. They are callable on or after Dec. 12, 2012 at par.
The securities will pay a coupon of 9.375% through Dec. 12, 2037, then three-month Libor plus 545.5 bps until Dec. 12, 2067, the final repayment date.
Bookrunners were Wachovia Capital Securities LLC and Morgan Stanley & Co. Inc.
Co-managers were Bear Stearns & Co., Ferris, Baker Watts, Inc., Janney Montgomery Scott LLC, Keefe, Bruyette & Woods, Inc., Oppenheimer & Co., RBC Dain Rauscher and Sandler O'Neill & Partners, LP.
Proceeds will be used to purchase the company's Capital Efficient Notes (CENts). These will be used to replenish cash reserves used to pay for the cash portion of consideration for the acquisition of Community Banks, Inc., and for general corporate purposes.
The financial holding company is based in Lititz, Pa.
| Issuer: | Susquehanna Capital I
|
| Guarantor: | Susquehanna Bancshares Inc.
|
| Issue: | Capital securities
|
| Amount: | $110 million (4.4 million securities)
|
| Greenshoe: | 660,000 capital securities
|
| Maturity: | Dec. 12, 2057
|
| Final repayment date: | Dec. 12, 2067, unless extended
|
| Bookrunners: | Wachovia Capital Securities LLC, Morgan Stanley & Co., Inc.
|
| Co-managers: | Bear Stearns & Co., Ferris, Baker Watts, Inc., Janney Montgomery Scott LLC, Keefe, Bruyette & Woods, Inc., Oppenheimer & Co., RBC Dain Rauscher, Sandler O'Neill & Partners, LP.
|
| Coupon: | 9.375% through Dec. 12, 2037, then three-month Libor plus 545.5 bps until Dec. 12, 2067
|
| Price: | Par of $25
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| Call: | On or after Dec. 12, 2012 at par
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 12
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| Ratings: | Moody's: Baa2
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| Standard & Poor's: BB+
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