This article appears courtesy of Institutional Investor
Source: Corporate Financing Week
Dan Shirai
U.S. Bancorp offered $375 million in trust preferreds last week in what bankers say is the tip of the iceberg for hybrid refinancings. Around $20 billion in trust preferreds are expected to be refinanced next year and with this deal serving as a precedent, bank holding companies will be able to obtain Tier I capital, high-equity treatment from Moody’s Investors Service , and tax deductibility, all in the same security.
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