First Midwest Bancorp Sells a New Preferred

$18 billion in assets community banker First Midwest Bancorp (FMBI) is selling a new issue of preferred stock.

The coupon is 7% and the issue is non-cumulative. The normal optional early redemption period will begin 8/20/2025 and on any dividend payment date thereafter.

The issue is rated BB- by S&P and Ba1 by Moodys—not investment grade.

The issue should trade today on the OTC grey market under temporary ticker FMEEL.

The pricing term sheet can be read here.

The preliminary prospectus can be read here.

mcg had this one in the Reader Initiated Alerts yesterday.

7 thoughts on “First Midwest Bancorp Sells a New Preferred”

  1. The new FMBI underwhelms me and judging from the number and content of posts it’s doing the same for others.

    BB- community bank in this environment? Yikes, no. Seems this issue is driven by the banks liquidity needs, not by a wealth of new opportunity.

    1. Bob, I have largely vacated the bank area except for 2 issues and yes I did buy a bit more of CBLKP today at $100.50. But Im basically done here, and any IPO as far as that goes. Let things settle down a bit, unless some sweet over yielding ute preferred pops up.

    2. Bob, I’m thinking the bondholders, friends of the c-suite, bought drinks at the clubhouse and floated the idea of the new issue to support the senior debt holders, just-in-case…

  2. Did you see the swing in CIT today? It opened down to 12.31 and closed at 14.65, a swing of 18 percent. I haven’t seen CIT mentioned as a possible acquisition.

    I’ll stick to the preferred.

  3. Schwab shows 24.50, no B/A– BUT vol is over 500k ??
    Common is in free fall over 50% – paying over 5%

    1. Took a look at the chart. Same thing with C and WFC so maybe nothing out of the current situation.

Leave a Reply

Your email address will not be published.