Synovus Financial Announces Preferred Issue

Synovus Financial Corp (NYSE:SNV) has announced a fixed-rate reset preferred issue.

Of course the issue is non-cumulative (being a banking issue) and will have a fixed coupon until 2024 . After this point in time the rate will be reset at the 5 year treasury plus a spread (as of yet unannounced).

Shares will trade under ticker SNV-E when they finally trade on the NYSE–they will initially trade on the OTC market under a yet to be announced ticker.

The company has one other preferred outstanding which can be seen here.

We think these will be rated BB- (junk) by S&P.

The preliminary prospectus can be found here.

One thought on “Synovus Financial Announces Preferred Issue”

  1. https://www.sec.gov/Archives/edgar/data/18349/000114036119011599/nt10002700x2_424b5.htm

    From the date of issuance to, but excluding, July 1, 2024, we will pay dividends, when, as, and if declared by our board or such committee at a fixed rate of 5.875% per annum, payable quarterly, in arrears, on January 1, April 1, July 1 and October 1 of each year beginning on October 1, 2019, and ending on July 1, 2024. From and including July 1, 2024, for each reset period, we will pay dividends, when, as, and if declared by our board or such committee at a rate equal to the five-year U.S. Treasury Rate as of the most recent reset dividend determination date (as described elsewhere in this prospectus supplement) plus 4.127% per annum, payable quarterly, in arrears, on January 1, April 1, July 1 and October 1 of each year, beginning on July 1, 2024.

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