By James McCandless
San Antonio, Aug. 3 – Huntington Bancshares Inc. priced a $500 million offering of $1,000-par series G non-cumulative perpetual preferred stock (Baa3/BB+/BB+) with a dividend of 4.45%, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
The deal, announced Monday morning, was upsized from an initial $350 million and came in under talk of a dividend in the 4.75% to 4.875% area.
BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Huntington Securities, Inc. are the bookrunners.
Dividends are payable on Jan. 15, April 15, July 15 and Oct. 15, starting on Jan. 15, 2021.
The dividend resets on Oct. 15, 2027 to the seven-year Treasury rate plus 404.5 basis points.
The preferreds are redeemable on any dividend payment date or after the first reset date or within 90 days of a regulatory capital treatment event at par.
Huntington plans to use the proceeds for general corporate purposes, which may include, among other things, supporting asset growth of its subsidiaries.
The company does not plan to list the preferreds on any securities exchange.
Huntington is a Columbus, Ohio-based bank holding company.
| Issuer: | Huntington Bancshares Inc.
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| Description: | Series G 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: | BofA Securities, Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and Huntington Securities, Inc.
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| Co-managers: | UBS Securities LLC and Wells Fargo Securities, LLC
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| Dividend: | 4.45%; resets on Oct. 15, 2025 to the seven-year Treasury rate plus 404.5 bps
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| Price: | Par of $1,000
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| Yield: | 4.45%
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| Pricing date: | Aug. 3
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| Settlement date: | Aug. 10
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| Ratings: | Moody’s: Baa3
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| S&P: BB+
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| Fitch: BB+
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| Distribution: | SEC registered
|
| Talk: | 4.75% to 4.875%
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