Published on 1/27/2021 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: U.S. Bancorp sells $750 million 4% non-cumulative perpetual preferreds
By Taylor Fox
New York, Jan. 27 – U.S. Bancorp priced a $750 million offering of $25-par series M non-cumulative perpetual preferred stock (A3/BBB/BBB+/A) with a dividend of 4% at par, according to an FWP filing with the Securities and Exchange Commission.
Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BofA Securities, Inc., RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and TD Securities (USA) LLC are the bookrunners.
Dividends are payable quarterly on Jan. 15, April 15, July 15 and Oct. 15, starting on April 15.
The preferreds are redeemable on or after April 15, 2026 at par. Prior to that, the preferreds are redeemable after a regulatory capital treatment event.
U.S. Bancorp plans to list the preferreds on the New York Stock Exchange under the symbol “USBPrR.”
U.S. Bancorp is a Minneapolis-based financial services holding company.
| Issuer: | U.S. Bancorp
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| Description: | Series M non-cumulative perpetual preferred stock
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| Amount: | $750 million, or 30 million shares
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| Maturity: | Perpetual
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| Bookrunners: | Morgan Stanley & Co. LLC, U.S. Bancorp Investments, Inc., BofA Securities, Inc., RBC Capital Markets, LLC, UBS Securities LLC, Wells Fargo Securities, LLC, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and TD Securities (USA) LLC
|
| Co-managers: | Citigroup Global Markets Inc., Incapital LLC, Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, Cabrera Capital Markets LLC, Drexel Hamilton, LLC, Great Pacific Securities, R. Seelaus & Co., LLC and Siebert Williams Shank & Co., LLC
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| Dividend: | 4%
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| Price: | Par of $25.00
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| Yield: | 4%
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| Call: | On or after April 15, 2026 at par; Prior to that, after a regulatory capital treatment event
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| Pricing date: | Jan. 26
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| Settlement date: | Feb. 2
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| Ratings: | Moody’s: A3
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| S&P: BBB
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| Fitch: BBB+
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| DBRS: A
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| Distribution: | SEC registered
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| Listing: | NYSE: USBPrR
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