6/18/2025
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Banker UMB Financial (UMBF) has announced pricing of their new fixed rate reset preferred issue.
The issue prices with an initial coupon of 7.75% which will be reset on 7/1/2030 at the 5 year treasury rate plus a fixed spread of 3.743%.
It is highly likely that a portion of the proceeds will be used to redeem the UMBFP 7% fixed to floating issue which goes floating starting 7/15/2025–this issue was originally issued by Heartland Financial which merged with UMB Financial.
Banker UMB Financial (UMBF) has filed to sell a new fixed-to-floating rate preferred stock issue.
Of course it is non cumulative and pays the normal quarterly dividend.
The company has a fixed to floating preferred issue (UMBFP) outstanding which is redeemable on 7/15/2025–this issue has a giant sized spread of 6.675% (to be added to 3 month SOFR) and the banker no doubt wants to get rid of this potential 10-11% coupon so I would expect a call for 7/15/2025–here is their ‘use of proceeds’ statement–
We expect to receive net proceeds from this offering, after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $ (or approximately $ if the underwriters exercise in full their option to purchase additional depositary shares). We expect to use the net proceeds from the sale of the depositary shares for general corporate purposes, which may include the redemption of all outstanding shares of the Series A Preferred Stock and the repurchase, redemption, or retirement of a portion of the 2030 Notes.
The preliminary prospectus can be read here.
Thanks to 2whiteroses for catching this one and to jerrymac for chiming in yield talk in the 7.875% area.
Medallion Bank has priced a new issue of fixed rate reset preferred with an initial coupon of 9%. It will reset at the 5 year treasury plus a fixed spread of 4.94% on 7/1/2030–then reset every 5 years thereafter.
Medallion Bank is a division of Medallion Financial (MFIN).
Medallion Bank has a 8% fixed to floating issue outstanding (MBNKP) which is now floating at around 11% and they may call this issue with proceeds of the new offering.
Medallion Bank is regulated by the FDIC and all filings are on the FDIC website–NOT the SEC Edgar system.
If you go here and search for Medallion Bank you can access all of their filings.
Banker First Busey (BUSE) has priced their previously announced issue of non cumulative preferred stock.
They have price 8 million shares (and another 1.2 million for over allotment) with a coupon of 8.25%–shares are rated BBB- by Kroll Bond Rating agency.
No grey market ticker has been announced at time of publication.
Banker First Busey (BUSE) has announced they will be selling a new issue of non cumulative fixed rate preferred stock.
First Busey is a modest sized banker with about $20 billion in assets and was formed in 1980.
As far as I know this is their first issuance of $25/share preferred stock (at least publicly traded). They do have a $1,000 issue outstanding.
The preliminary prospectus can be read here.
As almost always J was on top of this one.