BB&T Corp (NYSE:BBT) has priced a new $1000/share fixed rate reset non cumulative preferred with an initial coupon of 4.80%.
Quite honestly this is a total crap issue–perpetual, non-cumulative with a rating of BBB- from S&P and Baa1 (potentially to be downgraded) from Moodys and BBB- from Fitch. Just barely investment grade.
The coupon is fixed until 9/1/2024 and then resets at the 5 year treasury plus a spread of 3.003%. After this it will be reset every 5th anniversary. The issue becomes optionally redeemable on 9/1/2024 at the companies option.
To top it all off the issue will pay dividends only twice a year.
We don’t deal with $1000 issues on this site, but I thought it would be nice to show what is coming down the road.