Truist Prices $500 Million Perpetual Preferred Stock Offering
TFC sits 25% above its 52-week low of $38.271.
Summary
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.
Key Events · Financing and Capital Events · TFC
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Preferred Stock Offering Priced
Truist Financial priced a $500 million offering of 6.250% Series S Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock.
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Net Proceeds to Issuer
The company expects to receive net proceeds of $495 million from the offering, after underwriting discounts.
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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.
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Capital Management
This offering contributes to the company's capital structure, following recent strong Q1 earnings and a previously announced share buyback authorization.
Analysis · TFC · Finance
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.
At the time of this filing, TFC was trading at $47.87 on NYSE in the Finance sector, with a market capitalization of approximately $59.5B. The 52-week trading range was $38.27 to $56.20. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.