Banker First Horizon Corporation to Sell Preferred Issue

Banker First Horizon Corporation (FHN) has announced they will be selling a new preferred issue with the intention of redeeming the 6.20% FHN-A issue.

The new issue is non-cumulative and likely will be rated a notch below investment grade.

Once again investors are caught with their pants around their ankles as FHN-A has fallen by 3-4% in the last 2 days. With the froth in the markets this is getting to be a regular occurance.

FHN has a total of 5 issues currently outstanding, which includes 3 issues outstanding from Iberia Bank which FHN merged with in July 2020.

The preliminary prospectus can be read here.

J was right on this one.

14 thoughts on “Banker First Horizon Corporation to Sell Preferred Issue”

  1. Fitch is relatively positive about this BBB- rated Regional Bank. Anyone with any first hand experience with them have anything to share? I usually don’t invest in non-investment grade though it seems they are not far from getting a ratings upgrade.

  2. Follow up on Tim Mcpartland’s comments on the PPP program:
    Today, Customer Bancorp (CUBI) reported earnings of $200 million in fees in just 2.5 months of 2021 round 3 of the ppp program CEO Jay Sidhu stated that CUBI should earn $400 million in pre tax revenues from the PPP program. For a small regional bank, $400 million is a great haul for no risk and minimal human effort (Sidhu cites technology for processing large quantity of loans). CUBI also report substantial growth in deposits (perhaps the ppp loans provided a good share of the deposit growth at very little cost). CUBI may not need to issue preferred stocks or baby bonds when it has ppp revenues coming in to its coffers.
    CUBI may not be alone in earning so much ppp fee income that it does not need the capital from preferred stocks like many banks issued last summer
    at 6.50 to 7.25 percent for us investors.

  3. Happens all the time. Which is why volume spikes need to be monitored. A’s went X today so there is that too. But I don’t think yesterdays action was w knowledge of call…..that all hit today imo

    1. FHN-A x-div today? don’t think that’s right… Last quarterly coupon payment was 4/10

      1. Thanks! Lol you correct it’s the earnings date. It’s just another case where holding negative or low yields to call can bite you

  4. How is it that on many occasions someone happens to be selling volume a day before the announcement..

      1. I served on the boards of two different publicly traded banks. Insider trading is something that is proactively discussed, monitored, and discouraged. It happens far less than an outsider may believe.

        1. What I meant is that pfds sometimes trade as if the info has been telegraphed. The pfds sometimes sense the call coming!!

          1. The market seems to know before the news is out more often than not. Somebody always knows something before everyone else.

            1. We’ve had hundreds and hundreds of pfds called so we get many examples. It seems to me most are not moved (down) ahead of the call date. And when it does appear to be happening most of that is just price action attracting more price action. BUT on the day of call, yes some seem to get the word before others!! Which gets back to…if there’s a spike down on volume its’ a good time to ask ‘does somebody know something I don’t’ !?!

              BTW did that deal come yesterday ???

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