First Horizon shifts floating-rate benchmark to SOFR on preferreds

Chicago, April 25 – First Horizon Corp. announced that the benchmark for its floating-rate securities will shift to CME term SOFR from Libor after June 30, according to a press release.

To be more precise, the benchmark will be the three-month CME term rate plus a spread adjustment of 26.161 basis points, starting with the first reset date after the cessation of Libor.

The change is supported by fallback language in the terms of securities issued by First Horizon Corp. and First Horizon Bank.

This will apply to the 6.625% series B, 6.6% series C and 6.1% series D fixed-to-floating non-cumulative perpetual preferred stock issued by First Horizon Corp. (NYSE: FHNPrB, FHNPrC and FHNPrD, respectively).

It will also apply to the series A non-cumulative perpetual preferred stock issued by First Horizon Bank (Cusip: 337158208).

Additionally, the transition will be applicable to the junior subordinated debentures issued by Capital Bank Statutory Trust International, Civitas Statutory Trust I, FNB United Statutory Trust I, FNB United Statutory Trust II, Greene County Capital Trust II, GreenBank Capital Trust I, Southern Community Capital Trust III and TIBFL Statutory Trust III.

The financial holding company is based in Memphis.

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