Synovus to sell $200 million convertible tangible equity units to yield 8.25%-8.75%, up 15%-20%

By Rebecca Melvin

New York, April 26 - Synovus Financial Corp. planned to price $200 million of tangible equity units, with a par value of $25 per unit, after the close of markets on Wednesday, to yield 8.25% to 8.75% with an initial conversion premium of 15% to 20%, according to a syndicate source.

Concurrently Synovus plans to price $400 million of common stock.

Each tangible equity unit, or tMED, will be composed of a prepaid stock purchase contract in respect of Synovus' common stock and a junior subordinated amortizing note.

The underwriters will have a 15% over-allotment option for both registered offerings.

J.P. Morgan Securities Inc. will serve as the bookrunner for each of the offerings.

Based in Columbus, Ga., Synovus is a financial services holding company with more than $32 billion in assets.

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