By Cristal Cody
Tupelo, Miss., May 22 – Truist Financial Corp. priced a $75 million over-allotment option of its new 5.25% perpetual series O non-cumulative preferred stock (Baa2/BBB-/BBB) on Friday, according to a market source.
The company sold $500 million of the preferreds on Tuesday in a deal upsized from $200 million.
Truist priced 20 million shares of $25-par depositary shares with each share representing 1/1000th of a share of the preferred stock in Tuesday’s offering.
The deal included a greenshoe of 3 million depositary shares.
BB&T Capital Markets, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC were the bookrunners.
The preferreds may be redeemed June 1, 2025 or any dividend payment thereafter at $25.00 plus any declared and unpaid dividends.
The company plans to list the depositary shares on the New York Stock Exchange under the ticker symbol “TFC.PO”.
Proceeds from the offering will be used for general corporate purposes.
Charlotte, N.C.-based Truist Financial is a bank holding company formed following the merger in 2019 of Branch Banking & Trust Co. and SunTrust Banks, Inc.
| Issuer: | Truist Financial Corp.
|
| Amount: | $75 million, or 3 million shares
|
| Description: | Series O non-cumulative preferred stock
|
| Maturity: | Perpetual
|
| Bookrunners: | BB&T Capital Markets, BofA Securities, Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC
|
| Co-managers: | Keefe, Bruyette & Woods, Inc. and Raymond James & Associates, Inc.
|
| Dividend: | 5.25%
|
| Price: | Par of $25
|
| Call features: | June 1, 2025 or any dividend payment date thereafter at $25.00 per depositary share plus declared and unpaid dividends
|
| Trade date: | May 22
|
| Settlement date: | May 27
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Total outstanding: | $575 million, or 23 million depositary shares
|
|
|
© 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.
