Synovus Financial Corp. on Aug. 1 redeemed all of its outstanding 5.2 million shares of series C preferred stock for a cash price of $25 per share, without interest, as disclosed in its latest quarterly filing.
The shares were redeemed for an aggregate redemption price of $130 million. In addition, Synovus paid a dividend of $2.6 million on the series C preferred stock.
The redemption of the shares was funded primarily with proceeds from Synovus' public offering of $200 million of series D preferred stock completed June 21.
Concurrent with the redemption, Synovus will recognize an extinguishment loss of $4.1 million to net income available to common shareholders. The loss will be recognized in a manner similar to the treatment of dividends paid on preferred stock during the three months ending Sept. 30.