Synchrony Financial’s $750 Million Non-Cumulative Perpetual Preferred Stock

Sidley Austin LLP advised Synchrony Financial on the deal. Davis Polk advised Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo, LLC, and J.P. Morgan Securities LLC, as representatives of the several underwriters in connection with the offering.

The Synchrony Financial offering consisted of 30,000,000 depositary shares, each representing a 1/40th ownership interest in a share of its 5.625% non-cumulative perpetual preferred stock, Series A, par value $0.001 per share, with a liquidation preference of $25 per depositary share (equivalent to $1,000 per share of Series A preferred stock). The gross proceeds from the offering totaled approximately $750 million.

The underwriters involved were Morgan Stanley & Co. LLC, BofA Securities, Inc., Wells Fargo Securities, LLC, J.P. Morgan Securities LLC, Barclays Capital, Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Sandler O’Neill & Partners, L.P., Scotia Capital (USA) Inc., SG Americas Securities, LLC, TD Securities (USA) LLC, Academy Securities, Inc., Blaylock Van, LLC, CastleOak Securities, L.P., Incapital LLC, Mischler Financial Group, Inc., Samuel A. Ramirez & Company, Inc., R. Seelaus & Co., LLC, Siebert Williams Shank & Co., LLC.

Based in Stamford, Connecticut, Synchrony Financial is a premier consumer financial services company delivering customized financing programs across key industries including retail, health, auto, travel and home, along with award-winning consumer banking products.

The Davis Polk capital markets team included partner John B. Meade (Picture) and associates Yoojin L. Kim and Joanna Sedlak. Partner Margaret E. Tahyar and associate Eric B. Lewin provided regulatory advice. Partner Mario J. Verdolini and associate Ben Levenback provided tax advice.

Involved fees earner: Yoojin Kim – Davis Polk & Wardwell; Ben Levenback – Davis Polk & Wardwell; Eric Lewin – Davis Polk & Wardwell; John Meade – Davis Polk & Wardwell; Joanna Sedlak – Davis Polk & Wardwell; Margaret Tahyar – Davis Polk & Wardwell; Mario Verdolini – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Bank of America Securities; J.P. Morgan Securities LLC; Morgan Stanley; Wells Fargo Securities;

Author: Ambrogio Visconti