Northern Trust Corporation has commenced a public offering of USD750 million of its common stock for sale to the public.
Additionally, Northern Trust intends to offer approximately USD500 million in original principal amount of senior notes in a registered public offering. The consummation of the common stock offering is not conditioned upon the concurrent consummation of the offering of notes.
Goldman, Sachs & Co. and Morgan Stanley & Co. Incorporated will serve as joint bookrunning managers for the equity transaction, with co-manager UBS Investment Bank. The underwriters will have a 30-day option to purchase up to an additional 15% of the offered amount of common stock from Northern Trust.
Northern Trust has been consulting with its regulators, including discussing Northern Trust’s own internal capital evaluation, and intends to use the capital raised, plus additional resources, to redeem all the Preferred Stock and repurchase the Warrant issued and sold to the U.S. Treasury as part of the TARP Capital Purchase Program.
“We are pleased to take these actions to enhance our already strong capital position,” says Frederick H. Waddell, president and chief executive officer, Northern Trust. “These steps will position Northern Trust to redeem Capital Purchase Program funds when permitted by regulators, while also strengthening our ability to pursue compelling growth opportunities.”
L.D.