First Citizens BancShares Prices $400M Perpetual Preferred Stock Offering

summarizeSummary

First Citizens BancShares has finalized the pricing for its $400 million offering of 6.625% non-cumulative perpetual preferred stock, strengthening its capital structure.

check_boxKey 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'.

auto_awesomeAnalysis

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.