Valley National talks $110 million noncumulative fixed-to-floating preferred stock at 6.25%

By Stephanie N. Rotondo

Phoenix, June 16 – Valley National Bancorp is offering $110 million of series A fixed-to-floating rate noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Tuesday.

Concurrently with the deal, the Wayne, N.J.-based bank is offering $90 million of subordinated debentures due 2025. The preferred sale is not contingent upon the other offer.

Price talk is around 6.25%, a market source reported.

Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc. and RBC Capital Markets are the joint bookrunners of the preferred deal.

When declared, dividends will be fixed and payable semiannually through 2025. After that, dividends will be payable quarterly and will be calculated at Libor plus a spread.

The preferreds become redeemable in 2025 or within 90 days of a regulatory capital treatment event at par plus accrued dividends.

The company will apply to list the new securities on the New York Stock Exchange.

Proceeds will be used for general corporate purposes, potential strategic acquisitions and investments in regards to regulatory capital.

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