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Wintrust Financial Sells a Fixed Rate Reset Preferred

One of the 1st new issues out of the gate in the last month is a Fixed Rate Reset Issue from Wintrust Financial Corp (WTFC).

NOTE that this issue will trade immediately under the OTC Grey Market ticker of WTFNL.

The community banker will sell a fairly large issue of 10,000,000 shares (with 1.5 million for over allotment) of new preferred with an initial coupon of 6.875%.

The coupon will reset in about 5 years to a rate of the 5 year treasury, plus a spread of 6.507%. Thereafter, resetting at a new rate every 5 years.

Of course the issue will be non-cumulative. The issue will be rated BB by Fitch, a bit shy of investment grade, while Dun&Bradstreet has a rating of BBB.

The preliminary prospectus can be read here.

The pricing term sheet can be read here.

Gary, SteveA and Martin had this one late yesterday.

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