First Horizon National Prices Preferred Issue

Banker First Horizon National Corporation (FHN) has announced the pricing of their new preferred stock.

The coupon will be 6.50%. The issue is non-cumulative and is rated BB- by Fitch and Ba2 by Moodys–not investment grade.

The permanent ticker will be FHN-E when it finally trades on the NYSE.

As of this moment the OTC grey market ticker has not been announced.

The pricing term sheet can be read here.

6 thoughts on “First Horizon National Prices Preferred Issue”

  1. The common has a yield of 7.2 percent and sells at half of book. The common is not much off of its bottom. Note that the bank bought back $200 million of its own stock in the last year. Is this issue of preferred just a Hail Mary by the board to prevent takeover, internal or external?

    1. I doubt very much that this is just a ‘Hail Mary’ by the board to prevent takeover…they are in the process of a ‘merger of equals’ with Iberia; stockholder approval already given by both companies & just waiting for all final regulatory OKs…this combined company will have a reasonably significant synergy & presence in it’s geographic area in the South.

      1. I missed the merger announcement but it seems strange for one of the merger partners to sell a new issue of preferred just before the merger and before any synergy can be proven.

        To me, synergy is one of those golden concepts that are oft repeated but rarely realized. All too often mergers just allow the board and top management of the surviving entity to justify raising compensation for heading up a bigger but not necessarily better company.

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