COLUMBUS, Ga. - Synovus (NYSE:SNV) Financial Corp. (NYSE: SNV), a regional bank headquartered in Columbus, Georgia, has launched an underwritten public offering of senior notes due in 2030. The company disclosed today that the proceeds from this offering will be allocated to general corporate activities, which may include paying off existing debts.
In the financial services sector, this type of offering is a common method for companies to raise capital for various corporate needs. BofA Securities, Inc. and Morgan Stanley & Co. LLC are leading the transaction as active joint book-running managers. Additionally, Synovus Securities, Inc. is listed as a passive book-running manager.
The offering is conducted in accordance with an effective registration statement filed under the Securities Act of 1933, as amended. The sale of these securities will take place through a prospectus supplement and an accompanying prospectus, and is subject to legal and regulatory requirements.
Potential investors are urged to review the prospectus supplement, the registration statement, and other relevant documents filed with the Securities and Exchange Commission (SEC) before making any investment. These documents are available for free on the SEC's website.
Synovus Financial Corp. is a significant player in the financial services industry with approximately $60 billion in assets. It provides a wide array of banking services and specialized products, including wealth services, treasury management, and international banking. The company operates branches across Georgia, Alabama, Florida, South Carolina, and Tennessee and has been recognized as a Great Place to Work-Certified Company.
This news is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the securities described. The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed.
In other recent news, Synovus Financial Corp reported robust Q3 earnings, with GAAP earnings per share of $1.18 and a 6% sequential rise in adjusted diluted EPS to $1.23, attributed to stronger net interest income and lower credit loss provisions. The firm completed approximately $100 million in share repurchases during the quarter. RBC Capital Markets maintained an Outperform rating on the company's shares, revising the price target to $57.00 following these positive results and Synovus' strategic initiatives. Citi analyst Benjamin Gerlinger also raised the price target for Synovus to $59.00, maintaining a Buy rating.
These recent developments reflect analysts' confidence in the bank's financial performance and strategic direction. Synovus' balance sheet repositioning and focus on strategic initiatives are expected to contribute to its financial stability and growth potential. The bank expects flat period-end loans in Q4 and anticipates loan growth to exceed GDP growth by 100 to 200 basis points. For Q4, Synovus provided an adjusted revenue guidance of $560 million to $575 million, anticipating a stable net interest margin.
The bank's approach is centered on organic growth rather than acquisitions in the current market environment. Synovus' recent performance and strategic initiatives have led to positive revisions in analyst projections, indicating the potential for continued financial success.
InvestingPro Insights
Synovus Financial Corp.'s recent move to launch a public offering of senior notes aligns with its strong financial position and market performance. According to InvestingPro data, the company boasts a market capitalization of $7.11 billion and has demonstrated impressive growth with a 107.65% price total return over the past year.
The bank's decision to raise capital through this offering comes at a time when it's trading near its 52-week high, with its current price at 96.81% of that peak. This suggests investor confidence in Synovus's financial health and future prospects. Additionally, an InvestingPro Tip highlights that Synovus has maintained dividend payments for 51 consecutive years, underscoring its commitment to shareholder returns.
Despite a revenue decline of 18.85% in the last twelve months, Synovus has shown resilience with a quarterly revenue growth of 13.3% in Q3 2024. The company's profitability is further emphasized by its operating income margin of 31.87% for the same period.
Investors considering Synovus should note that its P/E ratio stands at 22.59, which may be of interest when evaluating the stock's valuation in light of the new offering. The company's dividend yield of 3.04% could also be attractive to income-focused investors.
For those seeking a deeper analysis, InvestingPro offers 10 additional tips on Synovus Financial Corp., providing a more comprehensive view of the company's financial health and market position.
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