Regional banker Huntington Bancshares (HBAN) has announced a new issue of preferred stock.
The $123 billion dollar Ohio banker will sell non-cumulative, qualified and split investment grade shares.
The company has 2 outstanding preferred issues with coupons of 5.875% and 6.25% respectively–they can be seen here. The ‘use of proceeds’ statement says the company ‘may’ redeem their preferred shares. The 5.875% issue is currently redeemable and the 6.25% issue is redeemable starting 4/15/2021.
Yield talk on the new issue is 4.625%
The preliminary prospectus can be read here.
EarlyBird was right on this one.
This depressing. BB+ (negative) bank can sell 500 million of 4.5% perp without breaking a sweat.
I would say that HBANO is gone for sure and HBANN may be gone, too.
https://www.sec.gov/Archives/edgar/data/49196/000119312521025812/d196619dfwp.htm
I was looking at that. The deal size was 500mm. HBANO is 600mm and HBANN like 100 if my memory serves me (maybe/maybe not). They could have done more, they capped the deal
So unless they are pulling from elsewhere the HBANN may hang for a while. The ytc got too low for me I’m gone
Bob has that right. Their pfds trade rich.
Been expecting this for some time.
UOF indicates potential call of unspecified preferred. The one that makes most sense is HBANO. Callable 4-15 with 30 day’s notice, so I’m looking for a call as soon as the new one settles.
HBANN is callable right now but is lower coupon, so I think it hangs around a bit longer.
Also have 3 non-exchange traded preferred: 446150AL8, 446150AT1, and 446150AV6. The first is a F2F and the other two are 10 and 7-year resets.
HBAN is one of my favorite BB+ banks but the shares seldom trade at an appealing yield (taking account of call risk).
Temp ticker is HBANL
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02/02/2021 11:15:06
HBANL
Huntington Bancshares Inc Depositary Shares Rep 1/40th Perp Pfd Ser H
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