First Citizens BancShares Prices $400M Perpetual Preferred Stock Offering
Summary
First Citizens BancShares has finalized the pricing for its $400 million offering of 6.625% non-cumulative perpetual preferred stock, strengthening its capital structure.
Key Events
-
Prices $400 Million Preferred Stock Offering
First Citizens BancShares priced 16,000,000 depositary shares, each representing a 1/40th interest in 6.625% Non-Cumulative Perpetual Preferred Stock, Series E, at $25 per depositary share.
-
Secures $391 Million in Net Proceeds
The offering is expected to generate net proceeds of approximately $391.1 million for the company, before expenses.
-
Perpetual and Non-Cumulative Dividend
The Series E Preferred Stock is perpetual with no maturity date and carries a non-cumulative dividend rate of 6.625% per annum until the first reset date in March 2031.
-
Intends to List on Nasdaq
The company intends to apply to list the depositary shares on the Nasdaq Global Select Market under the symbol 'FCNCN'.
Analysis
This FWP filing finalizes the terms and pricing of the $400 million offering of Series E perpetual preferred stock. The offering, priced at $25 per depositary share with a 6.625% non-cumulative dividend, provides substantial capital to First Citizens BancShares. While adding a fixed dividend obligation, this type of financing is common for banks to bolster their regulatory capital and support growth initiatives, especially following recent solid earnings. The proceeds of approximately $391 million will enhance the company's financial flexibility.
At the time of this filing, FCNCA was trading at $2,032.76 on NASDAQ in the Finance sector, with a market capitalization of approximately $25B. The 52-week trading range was $1,473.62 to $2,245.34. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.