Terms

Series

6.60% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series C

Liquidation Preference

$25.00

Coupon Rate

6.6%

Rate Type

Fixed To Floating

Annual Dividend

$1.65

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 1, 2026

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Iberiabank Corporation; Pari Passu With: Series B 6.625% Fixed-To-Floating Non-Cumulative Perpetual Preferred Stock, Other Parity Stock; Senior To: Common Stock, Junior Stock

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.0025

Shares Offered

2,000,000

Prospectus Summary

IBERIABANK Corporation is offering 2,000,000 depositary shares, each representing a 1/400th interest in a share of its 6.60% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series C, with a liquidation preference of $25 per depositary share. Dividends are fixed at 6.60% per annum ($1.65 per depositary share annually) through April 30, 2026, then reset quarterly to three-month LIBOR plus 492 basis points. The Series C preferred stock is non-cumulative, meaning that if the board does not declare a dividend for any period, that dividend is permanently foregone with no obligation to make it up. As a holding company issue, the Series C preferred stock sits structurally subordinate to all debt obligations of IBERIABANK Corporation and all obligations of its bank subsidiary, IBERIABANK. It ranks senior to common stock and all junior securities, and pari passu with the existing Series B 6.625% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock. The Series C preferred is callable at $25 per depositary share beginning May 1, 2026, subject to regulatory approval. A regulatory capital call provision may apply (section truncated), which would allow redemption if the instrument loses Tier 1 capital treatment. At the $25 liquidation preference, the current fixed-rate yield is 6.60%, with quarterly payments of approximately $0.4125 per depositary share on February 1, May 1, August 1, and November 1, commencing August 1, 2016. Dividends from a bank holding company typically qualify for the preferential 15%/20% qualified dividend income rate for individual holders and the dividends-received deduction for corporate holders, though this is not explicitly confirmed in the prospectus. The dividend stopper provision blocks payments on common stock and junior securities — and prohibits repurchases of parity preferred — if the most recently completed Series C dividend period has not been paid in full.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If IBERIABANK does not pay the most recently completed dividend period in full on the Series C preferred stock, it cannot pay dividends on or repurchase common stock or other junior securities, and cannot repurchase parity preferred stock (including the Series B preferred stock).

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 72 (Strong)