Truist Prices $500 Million Perpetual Preferred Stock Offering

summarizeSummary

Truist Financial Corporation finalized the terms for a $500 million offering of 6.250% Series S Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, raising $495 million in net proceeds.

check_boxKey Events

• Preferred Stock Offering Priced

  Truist Financial priced a $500 million offering of 6.250% Series S Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock.

• Net Proceeds to Issuer

  The company expects to receive net proceeds of $495 million from the offering, after underwriting discounts.

• Perpetual and Non-Cumulative

  The Series S Preferred Stock is perpetual with no maturity date and features non-cumulative dividends, resetting after June 15, 2031.

• Capital Management

  This offering contributes to the company's capital structure, following recent strong Q1 earnings and a previously announced share buyback authorization.

auto_awesomeAnalysis

This offering strengthens Truist's capital base by adding $500 million in perpetual preferred equity. While preferred stock dividends represent a cost of capital, this move enhances the company's financial flexibility and supports its overall capital management strategy, following recent strong earnings and other capital market activities.