Synovus Financial Corp. Launches Major Senior Notes Offering
Overview of Synovus Financial Corp.'s Senior Notes Offering
Synovus Financial Corp. (NYSE: SNV), a prominent financial institution, has recently taken significant steps by announcing the pricing of a public offering totaling $500 million in fixed rate/floating rate senior notes that will mature in 2030. This offering is a strategic move as it aims to support the company’s general corporate purposes, which may also include the repayment of existing debts.
Key Features of the Notes
The senior notes will accumulate interest at a fixed rate of 6.168% from November 1, 2024, until November 1, 2029. Subsequently, a floating rate will apply based on the SOFR formula as detailed in accompanying documents. This structure provides investors with an attractive return while enabling Synovus to manage its liabilities effectively.
Management of the Offering
Leading the underwriting process are BofA Securities, Inc. and Morgan Stanley & Co. LLC, recognized for their expertise in the financial sector. They are supported by several co-managers, including well-established firms like Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC. This lineup highlights Synovus’s commitment to utilizing experienced partners for facilitating the offering.
Intended Use of Proceeds
Synovus plans to allocate the net proceeds from the offering strategically. The funds will be instrumental in enhancing their financial stability and could be utilized for settling outstanding debts, thereby optimizing their capital structure. This proactive approach aligns with the company’s broader financial strategies.
About Synovus Financial Corp.
Founded in Columbus, Georgia, Synovus Financial Corp. is a respected financial entity with a portfolio of approximately $60 billion in assets. The company thrives in offering a comprehensive range of services that cater to both commercial and personal banking sectors. Not only does Synovus provide essential banking services, but it also delivers specialized options like wealth management and capital markets services.
Commitment to Excellence
Synovus prides itself on its customer-first philosophy, with branches spanning several states, including Alabama, Florida, South Carolina, and Tennessee. The company has earned the title of a Great Place to Work-Certified Company, reflecting its commitment to cultivating a supportive and dynamic workplace culture.
Frequently Asked Questions
What is the amount of the senior notes offering by Synovus?
The offering amounts to $500 million in senior notes due in 2030.
What is the interest rate on the senior notes?
The notes will bear a fixed interest rate of 6.168% until November 1, 2029, followed by a floating rate based on SOFR from then on.
Who are the underwriters for this offering?
BofA Securities, Inc. and Morgan Stanley & Co. LLC are the key underwriters, with assistance from several co-managers in the financial sector.
What will Synovus do with the proceeds from the offering?
The proceeds will be used for general corporate purposes, including the potential repayment of existing debt to enhance financial stability.
Where can I find more information about Synovus?
Additional information about Synovus can be found on their official website, where they provide insights into their services and corporate initiatives.
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