COLUMBUS, Ga. - Synovus (NYSE:SNV) Financial Corp. (NYSE: SNV), a Georgia-based financial services company, announced the pricing of its $500 million offering of senior notes, which is expected to close on November 1, 2024. The fixed rate / floating rate senior notes are due in 2030 and will carry a fixed interest rate of 6.168% per annum until November 1, 2029. From that date, the rate will shift to a floating rate based on the Secured Overnight Financing Rate (SOFR) plus 2.347%.
The underwritten public offering involves active joint book-running managers BofA Securities, Inc. and Morgan Stanley & Co. LLC, with Synovus Securities, Inc. serving as the passive book-running manager. Additional co-managers include Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Keefe, Bruyette & Woods, Inc., and RBC Capital Markets, LLC.
Synovus intends to allocate the net proceeds from the offering towards general corporate purposes, which may encompass repaying existing debt. The offering is conducted pursuant to an effective registration statement under the Securities Act of 1933, as amended.
With approximately $60 billion in assets, Synovus provides a range of financial services including commercial and consumer banking, as well as specialized services such as wealth management, treasury management, and international banking.
The securities are available solely via a separate prospectus supplement and accompanying prospectus. Interested parties can obtain these documents from the book-running managers BofA Securities, Inc. and Morgan Stanley & Co. LLC. Investors are encouraged to first read the prospectus supplement, accompanying prospectus, and other related documents filed with the Securities and Exchange Commission (SEC), available on the SEC’s website.
This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. Synovus cautions against undue reliance on these statements, which are based on current expectations as of the date they are made. The company does not undertake any obligation to update forward-looking statements except as required by law.
The information in this article is based on a press release statement from Synovus Financial Corp.
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 company also 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, while Citi analyst Benjamin Gerlinger raised the price target for Synovus to $59.00, maintaining a Buy rating.
Simultaneously, Synovus announced a public offering of senior notes due in 2030, with proceeds expected to be allocated to general corporate activities. The offering is led by BofA Securities, Inc. and Morgan Stanley & Co. LLC as active joint book-running managers.
These recent developments reflect analysts' confidence in Synovus' financial performance and strategic direction. For Q4, Synovus provided an adjusted revenue guidance of $560 million to $575 million, anticipating a stable net interest margin. The bank's focus is on organic growth rather than acquisitions in the current market environment.
InvestingPro Insights
As Synovus Financial Corp. (NYSE: SNV) moves forward with its $500 million senior notes offering, it's worth noting some key financial metrics and insights from InvestingPro that provide context to this strategic move.
According to InvestingPro data, Synovus currently has a market capitalization of $7.07 billion, reflecting its significant presence in the financial services sector. The company's price-to-earnings (P/E) ratio stands at 22.54, suggesting investors are willing to pay a premium for its earnings potential.
One InvestingPro Tip highlights that Synovus has maintained dividend payments for 51 consecutive years, demonstrating a strong commitment to shareholder returns. This consistent dividend history may contribute to investor confidence as the company takes on new debt through the senior notes offering.
Another relevant InvestingPro Tip indicates that Synovus has seen a large price uptick over the last six months. Indeed, the data shows an impressive 39.73% price total return over the past six months, and an even more striking 107.65% return over the past year. This positive market performance could potentially support the company's ability to attract investors for its new debt offering.
It's also worth noting that Synovus's revenue for the last twelve months as of Q3 2024 was $1.75 billion, with an operating income margin of 31.87%. These figures suggest a solid financial foundation as the company looks to allocate the proceeds from the notes offering towards general corporate purposes and potential debt repayment.
For investors seeking a more comprehensive analysis, InvestingPro offers additional tips and insights beyond what's mentioned here. In fact, there are 10 more InvestingPro Tips available for Synovus, providing a deeper understanding of the company's financial health and market position.
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