Wesbanco Launches Preferred Stock Offering to Enhance Capital Structure and Financial Flexibility

Wesbanco Launches Preferred Stock Offering to Strengthen Capital Position

Wesbanco, Inc. announces a strategic move to enhance its capital structure through the pricing of an underwritten public offering of 9,200,000 depositary shares. Each depositary share represents a 1/40th interest in a share of its 7.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B, with a liquidation preference of $1,000 per share, translating to $25 per depositary share. The offering is set to provide net proceeds of approximately $200 million, with dividends accruing at a robust 7.375% per annum starting from September 17, 2025, until a reset on October 1, 2030, based on the five-year treasury rate plus an additional 3.795%. This initiative reflects Wesbanco's proactive approach in managing its capital and aligning its financial instruments with current market conditions.

The company plans to utilize the funds raised from this offering primarily for the redemption of its existing 6.75% Series A Preferred Stock and related depositary shares, which amounts to $150 million. Additionally, $50 million is earmarked for redeeming outstanding 4.0% Fixed-To-Floating Rate Subordinated Notes due September 30, 2030. By addressing these obligations, Wesbanco aims to optimize its capital structure and reduce its overall cost of capital, thereby enhancing its financial flexibility. The remaining proceeds will be allocated for general corporate purposes, which may include debt repayment, capital expenditures, and contributions to Wesbanco Bank’s capital.

The preferred stock offering is led by joint book-running managers Keefe, Bruyette & Woods, RBC Capital Markets, and Raymond James, with D.A. Davidson & Co. acting as co-manager. By listing the depositary shares on The Nasdaq Global Select Market under the symbol "WSBCPB," Wesbanco positions itself to attract a wider investor base, facilitating its growth strategy while maintaining a strong capital base to support its financial services activities.

In addition to the capital-raising initiative, Wesbanco continues to focus on strengthening its community banking services. The company emphasizes its commitment to providing high-quality financial services and fostering relationships with customers, which remains a cornerstone of its operational strategy. This focus on community engagement enhances Wesbanco's reputation and solidifies its position in a competitive banking landscape.

Overall, the recent offering not only signifies Wesbanco's determination to improve its capital efficiency but also underscores its broader strategy of maintaining a robust financial foundation to support ongoing and future business endeavors.