Amex Launches $1.58B Preferred Share Offering
American Express has announced plans to issue 1.6 million depositary shares representing a 1/1000th interest in its 6.45% Fixed Rate Reset Noncumulative Preferred Shares, Series E.
The offering aims to raise $1.58 billion after an underwriting discount of $10 per share, with the public offering price set at $1,000 per depositary share.
These preferred shares will carry a 6.45% annual dividend rate from issuance until September 15, 2031, resetting thereafter every five years based on the five-year treasury rate plus 2.119%.
The offering is rated Baa2 by Moody's and BBB- by both S&P and Fitch, with joint book-running managers including Barclays Capital, BofA Securities, Citigroup, Deutsche Bank, Mizuho Securities, RBC Capital Markets, and Wells Fargo Securities.