Synchrony Financial announced the public offering and sale of 500,000 depositary shares, resulting in net proceeds of approximately $495 million. Each depositary share represents a 1/100th interest in a share of its newly designated 7.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, which has an aggregate liquidation preference of $500 million.
Key Details
- Offering Details: The offering consists of 500,000 depositary shares at a public offering price of $1,000 per share, raising approximately $495 million in net proceeds for the company.
- Security Terms: The Series C Preferred Stock carries a non-cumulative fixed dividend rate of 7.250% per annum until the first reset date of August 15, 2031. After this date, the rate will reset every five years to the Five-Year U.S. Treasury Rate plus 3.078%.
- Redemption: The company may redeem the shares at its option, in whole or in part, on or after August 15, 2031. Redemption is also possible in whole at any time within 90 days following a regulatory capital treatment event, subject to regulatory approval.