By Stephanie N. Rotondo
Seattle, Sept. 7 – Associated Banc-Corp sold $100 million of 5.375% series D noncumulative preferred stock (expected ratings: Baa3/BB) at par of $25.00 on Wednesday, according to a market source.
Price talk was in the 5.5% area, a source reported. The preferreds will be issued as depositary shares representing a 1/40th interest.
BofA Merrill Lynch and UBS Securities LLC are the joint bookrunning managers. Citigroup Global Markets Inc. and RBC Capital Markets are the joint lead managers.
Dividends will be payable on the 15th day of March, June, September and December, beginning Dec. 15. The preferreds become redeemable Sept. 15, 2021 or in whole within 90 days of a regulatory capital treatment event at par plus accrued dividends.
Officers, directors and other persons affiliated with the Green Bay, Wis.-based bank are expected to purchase $12,725,000 of the preferreds.
Proceeds will be used to redeem all of the outstanding 8% series B noncumulative preferreds and for general corporate purposes, including repurchases of common stock, warrants and/or the 6.125% series C noncumulative preferreds.
| Issuer: | Associated Banc-Corp
|
| Securities: | Series D noncumulative preferred stock
|
| Amount: | $100 million, or 4 million shares
|
| Maturity: | Perpetual
|
| Bookrunners: | BofA Merrill Lynch, UBS Securities LLC
|
| Lead managers: | Citigroup Global Markets Inc., RBC Capital Markets
|
| Co-managers: | Deutsche Bank Securities Inc., Keefe, Bruyette & Woods Inc., Loop Capital Markets LLC, Piper Jaffray & Co., Robert W. Baird & Co. Inc., Sandler O’Neill + Partners LP
|
| Dividend: | 5.375%
|
| Price: | Par of $25.00
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| Yield: | 5.375%
|
| Talk: | 5.5%
|
| Call options: | On or after Sept. 15, 2021 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | Sept. 7
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| Settlement date; | Sept. 15
|
| Expected ratings: | Moody’s: Baa3
|
| S&P: BB
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| Expected listing: | NYSE: ASBPD
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