Synovus to pay $130 million to redeem series C perpetual preferreds

By Susanna Moon

Chicago, July 2 – Synovus Financial Corp. plans to pay about $130 million to redeem its outstanding series C fixed-to-floating rate non-cumulative perpetual preferred stock.

The preferred stock will be redeemed on Aug. 1.

Because the redemption date is also the dividend payment date, the redemption price of $25.00 per preferred excludes dividends, according to a company notice.

The company said on June 12 that it planned to redeem the perpetual preferreds using proceeds from the sale of new series D preferreds.

The $130 million of series C preferreds become callable on Aug. 1 at their liquidation preference of $25.00 per share.

Currently the series C preferreds are paying a dividend of 7.875%. On Aug. 1 that will switch to a floating rate of Libor plus 639 basis points.

The preferreds trade on the New York Stock Exchange under the symbol “SNVPrC.”

Synovus is a Columbus, Ga., bank holding company.

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