By Rebecca Melvin
New York, April 16 - Huntington Bancshares Inc. priced $500 million of perpetual convertible preferred shares at par of $1,000 with an 8.5% dividend and a 20% initial conversion premium after the market close on Wednesday, according to a company news release.
The shares priced at the cheap end of talk, which was for a dividend of 8% to 8.5% and an initial conversion premium of 20% to 25%.
There is an option to purchase up to $75 million of additional shares, or 15%, of the series A non-cumulative perpetual convertible preferred stock.
Morgan Stanley & Co. and Lehman Brothers Inc. are joint bookrunners, with co-managers including Huntington Investment Trust, SunTrust Robinson Humphrey and Wachovia Securities.
The shares are non-callable for five years, with forced conversion thereafter, subject to a 130% hurdle.
Proceeds are earmarked for general corporate purposes, including increasing liquidity and capital.
Huntington Bancshares is a regional bank holding company based in Columbus, Ohio.
| Issuer: | Huntington Bancshares Inc.
|
| Issue: | Perpetual convertible preferred shares
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley and Lehman Brothers
|
| Dividend: | 8.5%
|
| Par: | $1,000 per share
|
| Conversion premium: | 20%
|
| Conversion price: | $11.95
|
| Conversion ratio: | 83.6680
|
| Calls: | Non-callable for five years, with forced conversion thereafter subject to a 130% hurdle
|
| Takeover protection: | Yes
|
| Dividend protection: | Yes
|
| Pricing date: | April 16
|
| Settlement date: | April 22
|
| Distribution: | Registered
|
| Price talk: | 8% to 8.5%, up 20% to 25%
|
| Stock symbol: | Nasdaq: HBAN
|
| Stock price: | $9.96 at close April 16
|
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