By Stephanie N. Rotondo
Portland, Ore., March 1 - Raymond James Financial Inc. released additional details about its $350 million offering of 6.9% $25-par senior notes due March 15, 2042 in an FWP filing with the Securities and Exchange Commission Thursday.
The company announced the deal Wednesday, and a trader had speculated that about 8 million, or $200 million, of the notes were going to be issued, with pricing around 7%.
Interest will be payable quarterly, on the 15th day of March, June, September and December. The underwriters will have a 30-day $52.5 million over-allotment option.
Underwriters also have a 3.15% discount.
The notes can be redeemed, at the company's option, on or after March 15, 2017 at par plus accrued and unpaid interest.
The St. Petersburg, Fla.-based financial services firm will apply to list the notes on the New York Stock Exchange. Settlement is expected March 7.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Raymond James & Associates Inc. are the joint bookrunners. Co-managers are Fifth Third Securities Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets and BNY Mellon Capital Markets LLC.
Proceeds will be used to fund part of the company's acquisition of Morgan Keegan & Co. Inc. and MK Holding Inc.
| Issuer: | Raymond James Financial Inc.
|
| Securities: | Senior notes
|
| Amount: | $350 million
|
| Greenshoe: | $52.5 million
|
| Maturity: | March 15, 2042
|
| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Raymond James & Associates Inc.
|
| Co-managers: | Fifth Third Securities Inc., U.S. Bancorp Investments Inc., BB&T Capital Markets, BNY Mellon Capital Markets LLC
|
| Coupon: | 6.9%
|
| Price: | Par of $25.00; underwriters will receive 3.15% discount
|
| Call option: | On or after March 15, 2017 at par
|
| Pricing date: | Feb. 29
|
| Settlement date: | March 7
|
| Cusip: | 754730208
|
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