First Citizens raises $300M in preferred stock at 7.5% dividend
What's the deal? First Citizens BancSharesDealroom has a profile for this one. Try Dealroom → has raised $300 million through a public offering of perpetual preferred stock. It sold 300,000 depositary shares at $1,000 each, netting roughly $297 million after underwriting costs.
The terms: The Series F preferred pays a fixed 7.5% annual dividend until September 15, 2031, then shifts to a floating rate tied to the five-year Treasury rate plus 2.894%, resetting every five years. The stock is perpetual and non-cumulative, and any redemption requires prior Federal ReserveDealroom has a profile for this one. Try Dealroom → approval.
Why it matters: The offering adds $300 million of new Tier 1 capital at a 7.5% pre-tax cost. That dividend ranks ahead of common dividends, giving preferred holders a senior claim on the company's distributable funds.
The fine print: If First Citizens misses a full quarterly dividend, it generally cannot pay common dividends or buy back stock in the next period. A nonpayment event lasting an aggregate of 18 months would let Series F holders elect two directors.
Who's involved? Morgan StanleyDealroom has a profile for this one. Try Dealroom →, BofA SecuritiesDealroom has a profile for this one. Try Dealroom →, J.P. Morgan Securities, and Wells Fargo SecuritiesDealroom has a profile for this one. Try Dealroom → led the offering as bookrunners, with TD SecuritiesDealroom has a profile for this one. Try Dealroom → and First Citizens Capital Securities also participating. Pricing was set on September 9, with the deal closing on September 14, 2026.
The signal: At $300 million, the round sits near the 92nd percentile of all US post-IPO equity raises on record, underscoring the scale of the capital First Citizens is layering onto its balance sheet.
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