Georgia banker Synovus Financial (NYSE:SNV) has sold a fixed-to-floating rate preferred stock. The initial coupon will be 6.30%
Being a bank this issue is non-cumulative, but is qualified for lower taxation rates.
The shares will trade with the fixed rate until 2023 and then will float at the pitiful rate of 3 month libor plus a spread of 3.352%. This is woefully inadequate for a issue that is rated BB- by Standard and Poors.
The proceeds of this issue will be used to call the currently outstanding 7.875% fixed to floating rate issue (SNV-C) which becomes redeemable on 8/1/2018.
The pricing for the new issue can be found here.
The issue is to trade on the OTC Grey market under the temporary ticker of SYNVP.
Also, if this hasn’t been mentioned before, trading today are the new Crestwood Equity Partners units (Crestwood Equity Partners LP Pfd Unit 9.25%) : CEPPU
Thanks Wedgehead–will check into the Crestwood Units.