COLUMBUS, Ga.--(BUSINESS WIRE)--Synovus Financial Corp. (NYSE: SNV) announced today the results as of 5 p.m., New York City time, on Nov. 15, 2023 (the “Early Tender Time”), of its previously announced cash tender offer (the “Tender Offer”) to purchase up to $150 million in aggregate principal amount (as such amount may be increased or decreased by Synovus pursuant to the terms of the Tender Offer, the “Maximum Tender Amount”) of its outstanding 5.900% Fixed-to-Fixed Rate Subordinated Notes due Feb. 7, 2029 (the “2029 notes”).
As of the Early Tender Time, $82,382,000 aggregate principal amount of the 2029 notes had been validly tendered and not validly withdrawn. These 2029 notes are being accepted by the Company without proration. Holders of 2029 notes validly tendered at or prior to the Early Tender Time, not validly withdrawn and accepted for purchase in accordance with the terms of the Tender Offer will receive on Nov. 17, 2023 (the “Early Settlement Date”), for each $1,000 principal amount of such 2029 notes, the “Total Consideration” of $935, which includes an “Early Tender Payment” of $30. In addition to the Total Consideration, such holders will also receive, in respect of such 2029 notes, accrued and unpaid interest from the last interest payment date to, but not including, the Early Settlement Date.
Additionally, the Company announced today that the Early Tender Payment of $30 shall be extended and will apply to 2029 notes validly tendered from the date hereof to at or before the Expiration Time (as defined below). The terms and conditions of the Tender Offer, including the withdrawal deadline, which was 5 p.m., New York City time, on Nov. 15, 2023, otherwise remain unchanged and are set forth in an Offer to Purchase (the “Offer to Purchase”), dated Nov. 2, 2023. Accordingly, tendered 2029 notes may no longer be withdrawn.
The Tender Offer will expire at 5 p.m., New York City time, on Dec. 1, 2023 (the “Expiration Time”), unless extended or earlier terminated. Holders of 2029 notes validly tendered after the Early Tender Time and at or before the Expiration Time will be eligible to receive $935 for each $1,000 principal amount of such 2029 notes. Following this announcement, such amount shall also be referred to as the “Tender Offer Consideration.”
In addition to the Tender Offer Consideration, such Holders will also receive, in respect of such 2029 notes, accrued and unpaid interest from the last interest payment date for the 2029 notes to, but not including, the settlement date for such 2029 notes. Payment for all 2029 notes validly tendered after the Early Tender Time and accepted for purchase will be made promptly after the Expiration Time.
If more than the Maximum Tender Amount of 2029 notes are validly tendered and 2029 notes are accepted for purchase, the amount of 2029 notes that will be purchased will be prorated as described in the Offer to Purchase. Only 2029 notes validly tendered after the Early Tender Time and at or before the Expiration Time will be subject to possible proration. The Company reserves the right, but is not obligated, to increase the Maximum Tender Amount in its sole discretion. The Company will return any 2029 notes not accepted for purchase promptly after the Expiration Time.
Morgan Stanley & Co. LLC is serving as dealer manager (the “Dealer Manager”) for the Tender Offer.
Questions regarding the Tender Offer may be directed to the Dealer Manager at 800-624-1808 (toll-free) or 212-761-1057 (collect). Copies of the Offer to Purchase may be obtained upon request by contacting the tender agent and information agent for the Tender Offer (the “Tender and Information Agent”), D.F. King & Co., Inc., 48 Wall Street, 22nd Floor, New York, New York 10005; banks and brokers call collect 212-269-5550, all others call toll-free 800-967-7635, or via email at synovus@dfking.com.
As previously disclosed, please note that the rate at which the 2029 notes bear interest will reset on Feb. 7, 2024 (the “Reset Date”). The 2029 notes currently bear interest at a rate of 5.900% per annum. On the Reset Date, the rate at which any outstanding 2029 notes will bear interest will reset to a rate per annum which will be 3.379% above the 5-Year Mid-Swap Rate (as defined in the indenture for the 2029 notes). In accordance with the indenture, the 5-Year Mid-Swap Rate will be determined by reference to a designated screen page. If the designated screen page is not populated and no successor page is identified, the rate for such tenor will be determined upon consultation by Synovus with an investment bank of national standing, the parameters of which are expected to be in accordance with the ARRC’s recommended formula and result in a rate substantially similar to the SOFR Spread-adjusted Swap Rate. As a result, the rate at which any outstanding 2029 notes will bear interest following the Reset Date is not currently known and will depend on the 5-Year Mid-Swap Rate on the second business day prior to the Reset Date.
From time to time after the Expiration Time or earlier termination of the tender offer, Synovus and/or its affiliates may acquire any 2029 notes, to the extent permitted by applicable law, through open market purchases, privately negotiated transactions, tender offers, exchange offers or otherwise, upon such terms and at such prices as Synovus may determine, which terms may be more or less favorable than the terms of the tender offer and which prices may be more or less than the price paid pursuant to the tender offer and could be for cash or other consideration. Furthermore, Synovus has the right to redeem the 2029 notes, in whole but not in part, on the Reset Date at a redemption price equal to 100% of the principal amount of the 2029 notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. Based on current market conditions, Synovus does not currently intend to redeem the 2029 notes on the Reset Date; however, Synovus reserves its right to exercise its redemption rights on the Reset Date in accordance with the terms of the indenture for the 2029 notes.
This news release shall not be construed as an offer to purchase or a solicitation of an offer to purchase any of the 2029 notes or any other securities. The Tender Offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Synovus, the Dealer Manager, the Tender and Information Agent or any of their respective affiliates makes any recommendation as to whether holders of the 2029 notes should tender their 2029 notes pursuant to the Tender Offer. Holders must make their own decision as to whether to tender their 2029 notes and, if so, the principal amount of the 2029 notes to tender.
About Synovus
Synovus Financial Corp. is a financial services company based in Columbus, Georgia, with approximately $59 billion in assets. Synovus provides commercial and consumer banking and a full suite of specialized products and services, including private banking, treasury management, wealth management, mortgage services, premium finance, asset-based lending, structured lending, capital markets and international banking. Synovus has branches in Georgia, Alabama, South Carolina, Florida and Tennessee. Synovus is a Great Place to Work-Certified Company and is on the web at synovus.com and on X, formerly known as Twitter, Facebook, LinkedIn and Instagram.
Forward-Looking Statements
This press release and certain of our other filings with the Securities and Exchange Commission contain statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements through Synovus’ use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the outlook for Synovus’ future business and financial performance and/or the performance of the banking industry and economy in general. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Synovus to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Synovus’ management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this press release and certain of our other filings with the Securities and Exchange Commission. Many of these factors are beyond Synovus’ ability to control or predict.
These forward-looking statements are based upon information presently known to Synovus’ management and are inherently subjective, uncertain and subject to change due to any number of risks and uncertainties, including, without limitation, the risks and other factors set forth in the Offer to Purchase, under the caption “Forward-Looking Statements”, and Synovus’ filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2022, under the captions “Cautionary Notice Regarding Forward-Looking Statements” and “Risk Factors” and in Synovus’ quarterly reports on Form 10-Q and current reports on Form 8-K. We believe these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. We do not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law.
