By Stephanie N. Rotondo
Phoenix, June 17 – Valley National Bancorp sold $115 million of 6.25% series A fixed-to-floating rate noncumulative perpetual preferred stock, according to a press release.
Concurrently with the deal, the Wayne, N.J.-based bank priced $100 million of4.55% subordinated debentures due 2025. The preferred sale was not contingent upon the other offer.
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 June 30, 2025. After that, dividends will be payable quarterly and will be calculated at Libor plus 385 basis points.
The preferreds become redeemable on or after June 30, 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.
| Issuer: | Valley National Bancorp
|
| Securities: | Series A fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $115 million, or 4.6 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | Sandler O’Neill + Partners LP, Keefe Bruyette & Woods Inc., RBC Capital Markets
|
| Dividend: | Fixed at 6.25% until June 30, 2025, then floating at Libor plus 385 bps
|
| Price: | Par of $25.00
|
| Yield: | 6.25%
|
| Talk: | 6.25%
|
| Call options: | On or after June 30, 2025 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | June 16
|
| Settlement date: | June 19
|
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