First Horizon Corporation Announces Redemption of Series D Preferred Stock and Corresponding Series D Depositary Shares

Rhea-AI Summary

First Horizon (FHN) announces the redemption of all outstanding shares of its 6.10% Fixed to Floating Non-Cumulative Perpetual Preferred Stock, Series D, and related depositary shares on May 1, 2024. The redemption price is set at $25.00 per Series D Depository Share, totaling $10,000 per share of Series D Preferred Stock. Accrued dividends will not be included in the redemption price. The regular Series D semi-annual dividend declared in January will be paid separately on May 1, 2024.

Insights

Financial Analyst

The redemption of First Horizon Corporation's Series D Preferred Stock and corresponding depositary shares represents a strategic financial decision that could reflect the company's confidence in its liquidity and capital structure. By redeeming these shares at $25.00 per Series D Depository Share, the company is effectively closing out a chapter of its financing strategies. It's important to note that the preferred shares have a fixed to floating rate, which implies that the initial fixed dividend rate would switch to a variable rate after a certain period. This redemption could be a move to manage interest rate risk, especially if the company believes that future floating rates may not be as favorable.

For shareholders, this redemption means they will receive a lump sum payment, which could be reinvested or used elsewhere. The absence of accrued dividends in the redemption price is typical, as the redemption date coincides with a dividend payment date, ensuring that shareholders are not missing out on any expected income. From an investment perspective, this move could signal a shift in First Horizon's approach to managing its capital, possibly indicating a reallocation of resources towards more growth-oriented initiatives or debt reduction.

Market Research Analyst

First Horizon Corporation's decision to redeem its Series D Preferred Stock might be indicative of broader market trends. Financial institutions often adjust their capital structures in response to changing economic conditions, such as interest rate changes by the Federal Reserve. With preferred stocks typically carrying higher dividend rates than common stock, a redemption could be seen as a cost-saving measure, particularly if the company can access cheaper forms of financing in the current market.

It's also possible that this redemption reflects a strategic shift in investor relations, as preferred stockholders often have different priorities compared to common stockholders. The move could be aimed at simplifying the capital structure, which might appeal to common shareholders who prefer the potential for capital gains over the fixed income provided by preferred shares. This simplification can also make the company's financials easier to understand for analysts and investors, potentially making the stock more attractive to a broader market.

MEMPHIS, Tenn., April 1, 2024 /PRNewswire/ -- First Horizon Corporation (NYSE: FHN) today announced that on May 1, 2024 (the "Redemption Date"), it will redeem all outstanding shares of its 6.10% Fixed to Floating Non-Cumulative Perpetual Preferred Stock, Series D (the "Series D Preferred Stock"), and all related outstanding depositary shares, each representing a 1/400th interest in a share of the Series D Preferred Stock ("the Series D Depositary Shares") (NYSE: FHN PRD). After the redemptions, no shares of Series D Preferred Stock, and no Series D Depositary Shares, will remain outstanding.

The redemption price will be $25.00 per Series D Depository Share, corresponding to $10,000 per share of Series D Preferred Stock. Accrued dividends will not be included in either redemption price because the Redemption Date is also a dividend payment date. The regular Series D semi-annual dividend, which was declared in January, will be paid separately in the customary manner on May 1, 2024 to shareholders of record at the close of business on April 16, 2024.

Questions relating to the redemption should be directed to the redemption agent, Equiniti Trust Company LLC, at 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120 or 1-800-468-9716. Shareholders owning depositary shares through a broker, bank or other nominee may also contact that party for information.

About First Horizon 
First Horizon Corp. (NYSE: FHN), with $81.7 billion in assets as of December 31, 2023, is a leading regional financial services company, dedicated to helping our clients, communities and associates unlock their full potential with capital and counsel. Headquartered in Memphis, TN, the banking subsidiary First Horizon Bank operates in 12 states across the southern U.S. The Company and its subsidiaries offer commercial, private banking, consumer, small business, wealth and trust management, retail brokerage, capital markets, fixed income, and mortgage banking services. First Horizon has been recognized as one of the nation's best employers by Fortune and Forbes magazines and a Top 10 Most Reputable U.S. Bank. More information is available at www.FirstHorizon.com.

FHN-G

View original content to download multimedia:https://www.prnewswire.com/news-releases/first-horizon-corporation-announces-redemption-of-series-d-preferred-stock-and-corresponding-series-d-depositary-shares-302103696.html

SOURCE First Horizon Corporation

FAQ

What is the redemption date for First Horizon 's (FHN) Series D Preferred Stock and related depositary shares?

The redemption date is set for May 1, 2024.

What is the redemption price for First Horizon 's (FHN) Series D Depository Shares?

The redemption price is $25.00 per Series D Depository Share, equivalent to $10,000 per share of Series D Preferred Stock.

Will accrued dividends be included in the redemption price for First Horizon 's (FHN) Series D Preferred Stock?

No, accrued dividends will not be included in the redemption price.

When will the regular Series D semi-annual dividend be paid for First Horizon (FHN)?

The regular Series D semi-annual dividend declared in January will be paid separately on May 1, 2024.

Who is the redemption agent for First Horizon 's (FHN) Series D Preferred Stock and related depositary shares?

The redemption agent is Equiniti Trust Company located at 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120, or contact at 1-800-468-9716.