Regional Banker Citizens Financial Group (NYSE:CFG) has priced their new issue of fixed-to-floating rate preferred with an initial coupon of 6.35%. Shares will begin to float after 4/6/2024.
Details of the spread to be paid when the issue ‘floats’ in 2024 are not in the press release below and SEC documents are not published yet.
The company is selling 12,000,000 shares. Of course being a banking issue the shares will be non-cumulative, but will be qualified for preferential tax treatment.
The issue is rated BB+ (a notch below investment grade) by Standard and Poors. Moodys has no rating for the issue.
Shares will trade on the OTC Grey Market starting immediately under the temporary ticker symbol CFGLL. The permanent ticker will be CFG-D when trading moves to the NYSE.
We will post details when the SEC paperwork is published–hopefully yet tonight as we are anxious to see the ‘spread’ to be paid when the issue begins to float in 5 years.