Terms

Series

Non-Cumulative Perpetual Preferred Stock, Series F

Liquidation Preference

$25.00

Coupon Rate

4.7%

Rate Type

Fixed

Annual Dividend

$1.18

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

July 10, 2026

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, Junior Subordinated Debentures, All Liabilities To Creditors; Pari Passu With: Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, Series D Preferred Stock, Series E 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 Corporation is offering 6,000,000 depositary shares (NYSE: FHN PrF), each representing a 1/4,000th interest in a share of its Non-Cumulative Perpetual Preferred Stock, Series F, with a liquidation preference of $25 per depositary share. The fixed coupon is 4.70% per annum, equating to approximately $0.2938 per depositary share per quarter ($1.175 annually). The preferred stock is perpetual with no stated maturity and is first callable at par on July 10, 2026. Critically, dividends are non-cumulative: if the board does not declare a dividend for any period, that dividend is permanently forfeited and will never accrue or become payable, regardless of future dividend declarations. The Series F Preferred Stock ranks senior to First Horizon's common stock and all other junior stock, and pari passu with its existing Series A through E preferred stock. It is junior to all indebtedness and non-equity creditor claims. Because First Horizon is a bank holding company, the preferred stock is structurally subordinated to all deposit and creditor claims at First Horizon Bank; in a stress scenario, the bank's depositors and creditors are paid before anything flows up to the holding company. A regulatory capital call allows full (not partial) redemption within 90 days if a law, regulatory, or interpretive change creates meaningful risk that the Series F Preferred Stock will lose its Tier 1 capital treatment — a provision that could accelerate redemption at the issuer's discretion and at the investor's expense if the capital rules change. At the $25 offering price, the effective yield is 4.70%. Dividends are paid quarterly on January 10, April 10, July 10, and October 10 (commencing July 10, 2021), with record dates set 15 calendar days before each payment date. For U.S. corporate holders, dividends qualify for the dividends-received deduction (DRD); for non-corporate U.S. holders, dividends qualify for the preferential qualified dividend income (QDI) rate of 15%/20%, subject to holding period requirements. The dividend stopper can interrupt payments in two ways: (1) if First Horizon is deferring interest on its junior subordinated debentures, it cannot pay Series F dividends; and (2) if a dividend is simply not declared, it is gone permanently — there is no mechanism to catch up on missed payments.

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 F Preferred Stock for the most recent dividend period, it cannot declare or pay dividends on common stock or other junior stock, nor repurchase junior shares; additionally, if First Horizon is deferring interest on its junior subordinated debentures, it cannot pay dividends on the Series F Preferred Stock.

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 68 (Strong)