Published on 8/6/2020 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Equitable sells $500 million 4.95% fixed-rate reset preferreds at par
By James McCandless
San Antonio, Aug. 6 – Equitable Holdings, Inc. priced a $500 million offering of $1,000-par series B fixed-rate reset non-cumulative perpetual preferred stock (Ba1/BBB-) with a dividend of 4.95% at par on Thursday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal, announced Thursday morning, was upsized from an initial $300 million and came in under talk of a dividend in the 5.25% area.
Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC are the bookrunners.
Dividends are payable on June 15 and Dec. 15, starting on Dec. 15, 2020.
The dividend resets on Dec. 15, 2025 and every five years thereafter to the Treasury rate plus 473.6 basis points.
The preferreds are redeemable within three months of any reset date at par, within 90 days after a regulatory capital event at par or within 90 days after a rating agency event at $1,020.
Equitable Holdings plans to use the proceeds for general corporate purposes.
The company does not plan to list the preferreds on any securities exchange.
Equitable Holdings is a New York-based diversified financial services company.
| Issuer: | Equitable Holdings, Inc.
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| Description: | Series B fixed-rate reset non-cumulative perpetual preferred stock
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| Amount: | $500 million, or 500,000 shares
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| Maturity: | Perpetual
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| Bookrunners: | Wells Fargo Securities, LLC, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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| Senior co-managers: | Barclays, BofA Securities, Inc., Citigroup Global Markets Inc. and PNC Capital Markets LLC
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| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Natixis Securities Americas LLC, SG Americas Securities, LLC and Truist Securities, Inc.
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| Dividend: | 4.95%; resets on Dec. 15, 2025 and every five years thereafter to the Treasury rate plus 473.6 bps
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| Price: | Par of $1,000
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| Yield: | 4.95%
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| Call: | Within three months of any reset date at par, within 90 days after a regulatory capital event at par or within 90 days after a rating agency event at $1,020
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| Pricing date: | Aug. 6
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| Settlement date: | Aug. 11
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| Ratings: | Moody’s: Ba1
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| S&P: BBB-
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| Distribution: | SEC registered
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| Talk: | 5.25% area
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