U.S. Bancorp to sell series H noncumulative perpetual preferreds; price talk 5.15%

By Stephanie N. Rotondo

Phoenix, April 29 - U.S. Bancorp intends to sell at least $250 million of series H noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Monday.

The preferreds (expected ratings: Baa1/BBB+ /BBB/A) will be issued as depositary shares representing a 1/1,000th interest.

Price talk is 5.15% after being revised from early talk around 5.25%, according to a trader.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the joint bookrunning managers.

When declared, dividends will be payable on the 15th day of January, April, July and October, beginning July 15. The preferred shares become redeemable on or after July 15, 2018 or upon the occurrence of a regulatory capital treatment event.

The call price is par plus accrued dividends.

The Minneapolis-based bank intends to list the securities on the New York Stock Exchange under the ticker symbol "USBPO."

Proceeds will be used for general corporate purposes, which may include the redemption of the 7.875% series D noncumulative perpetual preferreds.

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