Terms

Series

Non-Cumulative Perpetual Preferred Stock, Series E

Liquidation Preference

$25.00

Coupon Rate

6.5%

Rate Type

Fixed

Annual Dividend

$1.62

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

October 10, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Non-Equity Claims; Pari Passu With: Series A Non-Cumulative Perpetual Preferred Stock, Other Parity Preferred Stock; Senior To: Common Stock, All Other Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.00025

Shares Offered

6,000,000

Prospectus Summary

First Horizon National Corporation, a Tennessee-based bank holding company, is offering 6,000,000 depositary shares (each representing a 1/4,000th interest in a share of Series E Non-Cumulative Perpetual Preferred Stock) at $25 per depositary share, carrying a fixed 6.500% annual dividend rate. The first optional call date is October 10, 2025, at $25 per depositary share. These dividends are non-cumulative: if the board does not declare a dividend for any quarterly period, that dividend is permanently forfeited — holders have no right to recover missed payments in future periods. The Series E Preferred Stock ranks senior to First Horizon's common stock and all junior equity, and pari passu with the existing Series A preferred stock. It is expressly junior to all indebtedness and other non-equity claims against First Horizon. Because this is a holding company issuance, it is structurally subordinated to all creditors and depositors of First Horizon Bank — the subsidiary whose dividends upstream cash to fund preferred payments. The issuer also has a regulatory capital call: if a change in law or regulation causes the Series E to lose Tier 1 capital treatment, First Horizon may redeem the entire series (not partially) within 90 days of that event. This provision protects the issuer's capital flexibility but introduces early redemption risk for investors. At the $25 offering price, the effective yield at par is 6.500%, equating to approximately $0.40625 per depositary share per quarter, payable on January 10, April 10, July 10, and October 10, commencing October 10, 2020. The record date is the 15th calendar day before each payment date. Dividends qualify for the preferential QDI tax rate for eligible non-corporate U.S. holders and for the dividends-received deduction for qualifying corporate holders. Dividend stopper mechanics prevent First Horizon from paying dividends on common stock or repurchasing junior securities if the most recent Series E quarterly dividend has not been paid in full, providing a partial protective signal — though because dividends are non-cumulative, any skipped period remains permanently unpaid.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If First Horizon has not paid full dividends on the Series E Preferred Stock for the most recently completed dividend period, it may not pay dividends on or repurchase its common stock or other junior securities; parity preferred dividends must be paid ratably alongside Series E dividends.

Other Preferreds from First Horizon Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 53 (Average)