First Horizon Prices $400 Million Perpetual Preferred Stock Offering

summarizeSummary

First Horizon Corporation has priced its offering of $400 million in Series H Non-Cumulative Perpetual Preferred Stock, with depositary shares priced at $25.00 each and carrying a 6.750% dividend rate.

check_boxKey Events

• Preferred Stock Offering Priced

  First Horizon Corporation priced an offering of 16,000,000 Depositary Shares, each representing a 1/4,000th interest in a share of Series H Non-Cumulative Perpetual Preferred Stock, at $25.00 per Depositary Share.

• Substantial Capital Raise

  The offering is valued at $400,000,000, with net proceeds to the issuer (before expenses) expected to be approximately $393.34 million.

• Dividend Rate Set

  The Series H Preferred Stock will pay a non-cumulative dividend at a rate of 6.750% per annum, payable quarterly.

• Optional Redemption Terms

  The Series H Preferred Stock is perpetual but may be optionally redeemed by the issuer on or after April 10, 2031, or within 90 days following a Regulatory Capital Event.

auto_awesomeAnalysis

First Horizon Corporation has finalized the terms and pricing for its $400 million offering of Series H Non-Cumulative Perpetual Preferred Stock. This substantial capital raise, representing a significant addition to the company's capital structure, provides the company with additional financial flexibility and strengthens its balance sheet. The offering, which follows the company's recent report of strong 2025 financial results, appears to be a proactive capital management strategy rather than a distressed financing. The non-cumulative nature of the 6.750% dividend provides some flexibility for the issuer, as dividends are only paid if declared by the board. Investors should note the perpetual nature of the preferred stock and its optional redemption terms.