IberiaBank (NASDAQ:IBKC) has priced their new fixed-to-floating rate preferred with an initial coupon of 6.10%.
The coupon will be fixed until 5/1/2024 after which it will float at a rate of 3 month Libor plus a spread of 3.859%.
The issue will pay semi-annual dividends until 5/1/2024 and once the issue reaches the floating rate period will pay dividends quarterly—the 1st dividend on the issue won’t be paid until 11/1/2019.
Dividends will be non-cumulative, but they should be qualified for preferential tax treatment.
The issue is rated BB by Standard and Poors and is unrated by the other ratings agencies.
The issue will trade immediately on the OTC Grey market under the temporary ticker symbol of IBBRL.
The permanent ticker once the issue moves onto NASDAQ will be IBKCN, but of course this can change if the exchange rejects the suggested ticker.