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 issue is to trade on the OTC Grey market under the temporary ticker of SYNVP.