BB&T to offer up to $200 million of preferreds; talk is 5.9% to 5.95%

By Stephanie N. Rotondo

Portland, Ore., April 25 - BB&T Corp. intends to sell series D noncumulative perpetual preferred stock, the company said in a 424B3 filing with the Securities and Exchange Commission on Wednesday.

The issue size is expected to be at least $200 million. Price talk is 5.9% to 5.95%, according to a trader.

Bank of America Merrill Lynch, BB&T Capital Markets, Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners. Citigroup Global Markets Inc., Stifel Nicolaus & Co. Inc. and UBS Securities LLC are the lead managers.

Each preferred has a liquidation preference of $25,000. They will be issued as $25 depositary shares each representing a 1/1,000th interest in a preferred.

Dividends will be payable on the 1st of February, May, August and November when declared by the board. The first payout date is Aug. 1.

The company can redeem the preferreds on May 1, 2017 or on any dividend payment date thereafter. The preferreds can also be redeemed, in whole, prior to that date upon the occurrence of a regulatory capital treatment event.

BB&T will apply to list the new preferreds on the New York Stock Exchange under the ticker symbol "BBTPD." Settlement is expected May 1.

Proceeds will be used for general corporate purposes. These may include potential acquisitions, stock repurchases, the repayment and/or refinancing of debt obligations, which may include the redemption of trust preferreds, and extending credit to or funding investments in BB&T subsidiaries.

BB&T is a Winston-Salem, N.C.-based financial holding company.

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