By Stephanie N. Rotondo
Seattle, March 2 – BB&T Corp. priced $425 million of 5.625% series H noncumulative perpetual preferred stock (expected ratings: Baa1/BBB-/BBB-) on Wednesday, according to a market source.
Initial price talk was 5.75% to 5.875%, a source said, but was later revised to 5.625%.
The deal came upsized from $150 million.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
BofA Merrill Lynch, BB&T Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers.
Dividends will be paid on the first day of March, June, September and December, beginning June 1. The preferreds become redeemable on or after June 1, 2021 at par plus accrued dividends.
Additionally, the Winston-Salem, N.C.-based bank can opt to redeem the shares in whole upon the occurrence of a regulatory capital treatment event.
Proceeds will be used for general corporate purposes, which may include acquisitions, common stock repurchases, debt repayment and refinancing, and/or extending credit to or funding investments in subsidiaries.
| Issuer: | BB&T Corp.
|
| Securities: | Series H noncumulative preferred stock
|
| Amount: | $425 million, or 17 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, BB&T Capital Markets, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Raymond James & Co., RBC Capital Markets LLC, Stifel Nicolaus & Co. Inc.
|
| Dividend: | 5.625%
|
| Price: | Par of $25.00
|
| Yield: | 5.625%
|
| Talk: | Initially 5.75% to 5.875%, then revised to 5.625%
|
| Call options: | On or after June 1, 2021 or upon a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | March 2
|
| Settlement date: | March 9
|
| Expected ratings: | Moody’s: Baa1
|
| Standard & Poor’s: BBB-
|
| Fitch: BBB-
|
| Expected listing: | NYSE: BBTPH
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
