By Stephanie N. Rotondo
Phoenix, April 24 - BB&T Corp. priced $450 million of 5.2% series G noncumulative perpetual preferred stock, according to market sources on Wednesday.
The preferreds will be issued as depositary shares representing a 1/1,000th interest.
BofA Merrill Lynch, BB&T Capital Markets, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunning managers.
When declared, dividends will be payable on the first day of March, June, September and December, beginning June 1. The preferreds become redeemable on or after June 1, 2018 at par plus accrued dividends.
Additionally, the Winston-Salem, N.C.-based financial institution can call the preferreds in whole prior to June 1, 2018 in the case of a regulatory capital treatment event.
Proceeds will be used for general corporate purposes, which may include acquisitions, common stock repurchases, debt repayments and extending credit to or funding investments in subsidiaries.
| Issuer: | BB&T Corp.
|
| Securities: | Series G noncumulative preferred stock
|
| Amount: | $450 million, or 18 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, BB&T Capital Markets, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC
|
| Dividend: | 5.2%
|
| Price: | Par of $25.00
|
| Yield: | 5.2%
|
| Talk: | Around 5.25%
|
| Call options: | On or after June 1, 2018 or in the vent of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | April 24
|
| Settlement date: | May 1
|
| Expected listing: | NYSE: BBTPG
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