Bancolombia to Sell Up To $400m In Preferreds

Bancolombia will sell 60m preferred shares to existing investors at a rate of COP15,200 ($7.95) per share – the average price of the shares over the last 100 days. The offer will be open for 15 business days and buyers can sell their right to purchase the shares to other investors. At the current price, the bank could raise up to $477m, but it will likely cap the international sale at $400m, since the aim of the sale is to provide complementary subordinated capital to match a recent $400m 2017 note offering, priced May 21. Those 7.250% bonds came at 98.661 to yield 7.064% in the transaction via JPMorgan and UBS. UBS was tapped global coordinator for the preferred share offering and Bancolombia will pick a second underwriter.