Banker Wintrust Financial (WTFC) has announced they will be selling a new issue of fixed rate reset (reset after 5 years and then every 5 years thereafter at the 5 year treasury and a fixed spread) preferred issue.
The use of proceeds are as expected–
We intend to use the net proceeds from this offering for general corporate purposes, which may include the redemption of all or a portion of our outstanding shares of Series D preferred stock and/or Series E preferred stock and the corresponding depositary shares representing interests in the Series E preferred stock, subject to approval from the Federal Reserve. Pending such use, the net proceeds may be invested in cash or short-term marketable securities.
Note that I have both of these issues on the ‘hiding spots’ list for potential calls on 7/15/2025—so it looks like we won’t get any extra high dividends when the shares are ‘reset’ (because they won’t reach the reset date). Oh well will have to find new hiding spots after 7/15/2025.
The preliminary prospectus on the new issue can be read here.
Thanks to J for catching this one.
FWP — Term Sheet
https://www.sec.gov/Archives/edgar/data/1015328/000110465925046219/tm2513736d4_fwp.htm
OTC market
https://www.otcmarkets.com/stock/WTFPV/overview
I’d have to sell WTFCP early to have cash to buy WTFCN, which does not have the immediacy/hideout allure of P and M.
Hearing coupon talk of 7.875 area…fwiw.
A 7.875% new issue rate sounds “tasty” and very comparable to the WTFCM floating rate if it survives…..hmmmmm…….
Any late Thursday pm …. re Prelim Rate on the new WTFCN issue Coupon level ?
Do we know how many shares of the new fixed rate reset preferred are being offered?…..We do know that WTFCM has 5million shares outstanding and WTFCP has 11.5 million shares outstanding….I’m pretty sure they will concentrate on calling WTFCP as it has the 5 year reset….i hope WTFCM can survive………I have 2500 shares of each issue………
Looks like 17 million shares. That’s almost a perfect call on both issues. Not wa\hat I wanted to see.
If 17mil is the amount, they’re probably expecting the underwriters to exercise the standard 15% green shoe option…. That’d probably cover the redemptions plus the underwriting fees……
Term Sheet reads — Over-allotment Option : None
“We have granted the underwriters an option, exercisable within 30 days from the date of this prospectus supplement, to purchase up to additional depositary shares at the public offering price less the applicable underwriting discount, solely to cover overallotments, if any.” https://www.sec.gov/Archives/edgar/data/1015328/000110465925045940/tm2513736-2_424b5.htm#sDODS cover page
I wonder the discrepancy… Does the FWP act to declare the option was not and will not be exercised or do they still have 30 days to do so?