By Stephanie N. Rotondo
Seattle, July 27 – Valley National Bancorp priced $100 million of 5.5% fixed-to-floating rate noncumulative preferred stock on Thursday.
The deal came in line with price talk and upsized from $75 million.
Earlier in the day, the company said in a regulatory filing that it had added a fixed-to-floating rate feature to the deal, which was not included in the original announcement on Wednesday.
Keefe Bruyette & Woods Inc. is the bookrunner.
The dividend rate will be fixed until Sept. 30, 2022, at which time it will float at Libor plus 357.8 basis points.
The preferreds become redeemable on Sept. 30, 2022, or in whole within 90 days of a regulatory capital treatment event. In either case, the redemption price is par plus accrued dividends.
The new securities will be listed on the New York Stock Exchange.
The Wayne, N.J.-based bank holding company intends to use the proceeds for general corporate purposes and for investments in Valley National Bank as regulatory capital.
| Issuer: | Valley National Bancorp
|
| Securities: | Series B fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $100 million, or 4 million shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Keefe Bruyette & Woods Inc.
|
| Co-manager: | Hovde Group LLC
|
| Dividend: | Fixed at 5.5% until Sept. 30, 2022, then floating at Libor plus 357.8 bps
|
| Price: | Par of $25.00
|
| Yield: | 5.5%
|
| Talk: | 5.5%
|
| Call options: | On or after Sept. 30, 2022 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | July 27
|
| Settlement date: | Aug. 3
|
| Expected listing: | NYSE
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
