Finance

First Horizon Corporation Announces Comprehensive Redeem of Series D Preferred Stock

MEMPHIS, Tenn., April 1, 2024 /PRNewswire/ – In a significant move that underscores its strategic financial maneuvering, First Horizon Corporation (NYSE: FHN) has announced the upcoming redemption of an entire class of its preferred stock. Set to take place on May 1, 2024, referred to as the "Redemption Date", the company aims to fully redeem all of its outstanding shares of 6.10% Fixed to Floating Non-Cumulative Perpetual Preferred Stock, Series D, also known as the "Series D Preferred Stock". This action will also encompass all related outstanding depositary shares, with each representing a 1/400th interest in a share of the Series D Preferred Stock, colloquially termed as the "Series D Depositary Shares" (NYSE: FHN PRD). Following the redemption, First Horizon will have no shares of Series D Preferred Stock or Series D Depositary Shares remaining in circulation.

Financial Details of the Redemption

The terms of redemption include a price tag set at $25.00 per Series D Depositary Share, which translates to $10,000 per share of Series D Preferred Stock. It is pertinent for investors to note that the redemption price will not incorporate accrued dividends. This exclusion of dividends from the redemption payout is due to the Redemption Date coinciding with a dividend payment date. However, the good news for shareholders is that the regular Series D semi-annual dividend will be processed and disbursed as per usual. This payment involves the dividend that was previously declared in January and is scheduled to be paid out on May 1, 2024, to those shareholders who are recorded at the close of business as of April 16, 2024.

Redemption Procedure and Contact Information

First Horizon Corporation has appointed Equiniti Trust Company LLC to manage the redemption process. Shareholders and interested parties seeking additional information or assistance regarding the redemption should reach out directly to Equiniti Trust Company LLC, which is located at 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120. Shareholders can contact Equiniti Trust Company LLC by phone at 1-800-468-9716. Additional guidance should be sought by shareholders who hold their depositary shares through brokers, banks, or other nominees, as they should contact their respective institutions for further details on the redemption process.

Insights into First Horizon Corporation

Delving deeper into the corporate profile of First Horizon Corp. (NYSE: FHN), the corporation boasts a significantly sized asset portfolio totaling $81.7 billion as of December 31, 2023. Renowned as a leading player in regional financial services, First Horizon stands firm in its commitment to bolstering the potential of its clients, communities, and associates through thoughtful financial advice and capital support. Operating with its corporate headquarters stationed in Memphis, TN, the company's banking subsidiary, First Horizon Bank, extends its services to a substantial footprint over 12 states in the southern regions of the United States.

First Horizon Corporation and its subsidiaries collectively offer a comprehensive suite of financial services including commercial and private banking, consumer and small business lending, wealth and trust management, retail brokerage, capital markets expertise, as well as fixed income and mortgage banking solutions. Lauded for its workplace and service ethos, First Horizon has earned the commendation of being among the nation's best employers as testified by its recognition in Fortune and Forbes magazines. Moreover, the company prides itself on being placed within the Top 10 Most Reputable U.S. Banks. Those interested in learning more about First Horizon and its array of services can visit their website at www.FirstHorizon.com.

Stock Performance and Market Insights

The planned redemption of preferred stock is a noteworthy event that typically impacts a company's financial structure and potentially its stock performance. Preferred stock redemptions can be motivated by numerous factors including alterations in interest rates, changes in the issuer's capital structure, or shifts in strategic financial planning. FHN's decision to redeem its Series D Preferred Stock is an indication of their proactive financial management, aimed at streamlining capital distributions and optimizing their equity portfolio for the benefit of the company and its stakeholders alike.

Investor Reactions and Potential Implications

Investors and analysts closely monitor such corporate actions, understanding that these decisions can be reflective of the company's financial health and strategic direction. This redemption by First Horizon could signal a robust capital position, enabling the company to manage its preferred stock obligations effectively. For current shareholders of the Series D Preferred Stock, the redemption presents an opportunity to reallocate their investment capital following the payout. It also presents an occasion for those in the market to observe the potential changes in demand for the company's remaining security offerings.

Recommendations for Shareholders

Shareholders facing the redemption of their Series D Preferred Stock and Series D Depositary Shares are advised to consult with financial advisors to evaluate the optimal allocation of the redemption proceeds. Investors may contemplate re-investment into other First Horizon securities or explore a diversified set of financial instruments and markets to maintain a well-balanced investment portfolio. In doing so, investors ensure that the transitioning of funds aligns with their broader financial goals and risk tolerance levels.

Conclusion

This strategic financial move by First Horizon Corporation marks a significant undertaking by the company as it continues to reshape its capital distribution and refine its equity strategy. With the full redemption of its Series D Preferred Stock and Series D Depositary Shares right around the corner, stakeholders are keenly observing the unfolding structure of this regional financial powerhouse. As the corporation evolves, so does the opportunity for growth and investment within the dynamic financial services sector.

It remains critical for investors to maintain a watchful eye on announcements such as the one made by First Horizon Corporation regarding the redemption of preferred stock. These corporate actions can have lasting impacts on both the companies involved and the broader market. As the financial landscape continues to evolve amid changes and challenges, the ability of corporations like First Horizon to adapt and manage their financial instruments will be closely scrutinized by the investment community.

FOR MORE INFORMATION, interested parties can direct their queries or consultations to the dedicated redemption agent, Equiniti Trust Company LLC, or the appropriate financial intermediaries, ensuring smooth and informed participation in the redemption process.

About First Horizon Bank

First Horizon Bank, the banking subsidiary of First Horizon Corporation, operates a network of branches across the southeastern United States and stands as a testament to the corporation's larger commitment to excellence and local community support. As the company moves forward with its strategic initiatives, it remains devoted to delivering premium banking and financial services to its diverse array of clients throughout the region.

Acknowledgments and Recognitions

First Horizon's trajectory of success has not gone unnoticed, earning the distinction as one of the nation's top banks for its reputable practices and commitment to its customers. These accolades serve as a morale booster for the corporation, spurring continued innovation and an unyielding drive to serve its stakeholders even better in the years to come.

Navigating the Future

As First Horizon Corporation paves the way forward beyond the upcoming series D preferred stock redemption, it remains squarely focused on maintaining its tradition of fiscal responsibility and innovative banking solutions. The financial world eagerly anticipates the company's next steps as it continues to navigate the complexities of the marketplace with a blend of prudence and proactive strategy.

FHN-G

This identifier may be significant to current and potential investors, encapsulating the essence of the financial news and corporate revelations pertaining to First Horizon Corporation. It symbolizes more than a ticker symbol—it represents the continuity and adaptability of a corporation that has stood the test of time in the financial sector.

SOURCE First Horizon Corporation

As the issuer of this significant announcement, First Horizon Corporation ensures transparency and clarity in its communications with shareholders and the investment community at large. By utilizing trusted news dissemination services like PRNewswire, the corporation guarantees that its message is broadcast efficiently and effectively to all relevant parties.