First Horizon National Corp. (FHN) unveiled terms of its larger
planned sale of $500 million in four-year senior notes, part of a
larger capital raising to repay the government rescue funds.
The parent of First Tennessee Bank said in a statement the notes
will carry an annual interest rate of 5.375%.
First Horizon on Monday unveiled plans to sell at least $250
million in stock, along with $400 million in debt, to pay back the
$867 million it has outstanding under TARP and redeem another $103
million in debt.
Regional banks remain the biggest holders of TARP funds after
large banks sprinted to pay back the loans to free themselves from
increased regulation. Paybacks are expected to increase next
year.
First Horizon in October posted an unexpected third-quarter
profit as it cut the amount set aside to cover risky loans and
revenue declined less than analysts expected.
Shares closed Wednesday at $10.65 and were inactive premarket.
The stock is down 15% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com;