By Stephanie N. Rotondo
Seattle, Oct. 24 – People’s United Financial Inc. sold $250 million of 5.625% $25-par series A fixed-to-floating rate noncumulative preferred stock on Monday, a market source reported.
Price talk was 5.875%.
J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co. and Keefe Bruyette & Woods are the joint bookrunning managers.
Dividends will be payable quarterly. The rate will be fixed until Dec. 15, 2026, at which point it will float at Libor plus 402 basis points.
The preferreds become redeemable on Dec. 15, 2026 or upon a regulatory capital treatment event at par plus accrued dividends.
The new issue will be listed on the Nasdaq Global Select Market.
The Bridgeport, Conn.-based bank holding company plans to use the proceeds for general corporate purposes, including contributions of capital or extensions of credit to the bank.
| Issuer: | People’s United Financial Inc.
|
| Securities: | Series A fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $250 million, or 10 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Goldman Sachs & Co., Keefe Bruyette & Woods
|
| Co-manager: | Janney Montgomery Scott LLC
|
| Dividend: | 5.625% until Dec. 15, 2026, then floating at Libor plus 402 bps
|
| Price: | Par of $25.00
|
| Talk: | 5.875% area
|
| Call options: | On or after Dec. 15, 2026 or upon a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 31
|
| Expected listing: | Nasdaq
|
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