Banker WesBanco to Sell New Preferred

West Virginia banker WesBanco (WSBC) , which is a a bank holding company with $17 billion in consolidated assets, has announced that they will sell a new issue of non cumulative preferred.

The issue will be a fixed-rate reset issue. The issue will be sold with a fixed coupon for which will remain until 11/15/2025 after which the rate will be reset every 5 years at the 5 year treasury (now around .2%), plus a stated ‘spread’.

The issue will be unrated by the big 3 ratings agencies.

It is noted that a banker of similar size–Heartland Financial (HTLF) sold a fixed-rate reset recently which has traded very strongly–now at $26.98. The issue has an initial coupon of 7% with a spread of 6.675%.

The preliminary prospectus can be read here.

mcg was on top of this one. EarlyBird chimed in with ‘yield talk’ in the 6.875%-7.00% on the new issue.

9 thoughts on “Banker WesBanco to Sell New Preferred”

  1. Compare to Avis new bonds at 5.75 which “projects” profits for the second half of 2010.

  2. They closed the book on this one by noon. Haven’t heard the pricing. Buying in the after market

  3. Found the starting rate in other comments. But- if it is not .2 plus some other percent, who is going to hold it for 5yrs unless the 5yr treasury is off the charts high? Don’t get it.

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