Synovus announces pricing of $500 million senior notes offering

Rhea-AI Summary

Synovus Financial Corp. (NYSE: SNV) has announced the pricing of a $500 million senior notes offering due 2030. The notes will carry a fixed interest rate of 6.168% from November 1, 2024, to November 1, 2029, followed by a floating rate based on SOFR plus 2.347% until November 1, 2030. The offering is expected to close on November 1, 2024. The company plans to use the proceeds for general corporate purposes, including potential debt repayment. BofA Securities and Morgan Stanley are serving as the active joint book-running managers for the offering.

Positive

• Successful pricing of $500 million senior notes offering
• Proceeds will provide flexibility for debt repayment

Negative

• High interest rate of 6.168% for the first five years
• Increased debt burden on the company's balance sheet

Insights

Financial Analyst

This $500 million senior notes offering represents a significant debt financing move by Synovus. The fixed rate of 6.168% for the first five years followed by a SOFR-based floating rate structure reflects current market conditions and interest rate expectations. The dual-rate structure provides some initial cost certainty while allowing for market adjustment in the later period.

The involvement of major underwriters like BofA Securities and Morgan Stanley adds credibility to the offering. With $60 billion in assets, this debt issuance represents less than 1% of Synovus's asset base, suggesting a manageable level of additional leverage. The timing and structure indicate proactive liability management, potentially positioning for upcoming debt maturities or growth opportunities.

COLUMBUS, Ga.--(BUSINESS WIRE)-- Synovus Financial Corp. (“Synovus”) (NYSE: SNV) today announced the pricing of its previously-announced underwritten public offering of $500 million of fixed rate / floating rate senior notes due 2030 (the “Notes”). The Notes will bear interest (i) from and including November 1, 2024 to but excluding November 1, 2029 at a fixed rate of 6.168% per annum; and (ii) from and including November 1, 2029 to but excluding November 1, 2030 in accordance with the formula for SOFR described in the prospectus supplement related to the offering, plus 2.347%. The offering is expected to close on November 1, 2024, subject to customary closing conditions. Synovus intends to use the net proceeds from the offering for general corporate purposes, which may include the repayment of existing debt.

BofA Securities, Inc. and Morgan Stanley & Co. LLC are the active joint book-running managers for the offering, Synovus Securities, Inc. is the passive book-running manager for the offering and Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Keefe, Bruyette & Woods, Inc. and RBC Capital Markets, LLC are the co-managers for the offering.

Synovus is conducting the offering pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”). The offering is being made solely by means of a separate prospectus supplement and accompanying prospectus. This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. A copy of the final prospectus supplement and accompanying prospectus relating to the offering can be obtained by contacting BofA Securities, Inc., NC1-022-02-25, 201 North Tryon Street, Charlotte, NC 28255-0001, Attn: Prospectus Department, email: dg.prospectus_requests@bofa.com; or Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, NY 10014, email: prospectus@morganstanley.com. Potential investors should first read the applicable prospectus supplement and accompanying prospectus, the registration statement and the other documents that Synovus has filed with the Securities and Exchange Commission (the “SEC”) in connection with the offering. Investors may obtain these documents free of charge by visiting the SEC’s website at www.sec.gov.

Synovus Financial Corp.

Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $60 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including wealth services, treasury management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has branches in Georgia, Alabama, Florida, South Carolina and Tennessee. Synovus is a Great Place to Work-Certified Company. Learn more about Synovus at synovus.com.

Forward-Looking Statements

This press release and certain of our other filings with the SEC contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “predicts,” “could,” “should,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the financial services industry and economy in general. These forward-looking statements include, among others, our expectations regarding the expected use of the net proceeds from the offering; our future operating and financial performance; expectations on our growth strategy, expense and revenue initiatives, capital management, balance sheet management, and future profitability; expectations on credit quality and performance; and the assumptions underlying our expectations. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the current beliefs and expectations of Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release. Many of these factors are beyond Synovus’ ability to control or predict.

These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in Synovus’ filings with the SEC, including its Annual Report on Form 10-K for the year ended December 31, 2023, under the captions “Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241029663597/en/

Media Contact

Audria Belton

Media Relations

media@synovus.com

Investor Contact

Jennifer H. Demba, CFA

Investor Relations

investorrelations@synovus.com

Source: Synovus Financial Corp.

FAQ

What is the interest rate for Synovus (SNV) $500M senior notes offering?

The notes will have a fixed rate of 6.168% from November 1, 2024, to November 1, 2029, followed by a floating rate based on SOFR plus 2.347% until November 1, 2030.

When will Synovus (SNV) $500M senior notes offering close?

The offering is expected to close on November 1, 2024, subject to customary closing conditions.

How will Synovus (SNV) use the proceeds from the $500M notes offering?

Synovus intends to use the net proceeds for general corporate purposes, which may include the repayment of existing debt.