8-K: Raymond James to Redeem Series B Preferred Stock

Raymond James Financial, Inc. announced it will redeem all outstanding shares of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock and related depositary shares on January 2, 2026.

Summary

• Raymond James Financial, Inc. (NYSE: RJF) will redeem all 80,500 outstanding shares of its 6.375% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (Series B Preferred Stock) on January 2, 2026.
• The redemption will also include all related depositary shares (NYSE: RJF PrB), each representing a 1/40th interest in a share of Series B Preferred Stock.
• The redemption price for the Series B Preferred Stock will be $1,000.00 per share, and for the Series B Depositary Shares, it will be $25.00 per share.
• These redemption prices do not include declared and unpaid dividends, if any, prior to the redemption date.
• After the redemption on January 2, 2026, no shares of Series B Preferred Stock or Series B Depositary Shares will remain outstanding.
• The company has received all necessary approvals for this redemption.
• Computershare Inc. and Computershare Trust Company, N.A. will act as the redemption agent.

Sentiment

Score: 6

Explanation: The redemption of preferred stock is generally a positive or neutral event, indicating proactive capital management and potentially reducing future dividend obligations. It suggests financial stability to execute such a move.

Positives

• The redemption eliminates the 6.375% fixed-to-floating rate dividend obligation associated with the Series B Preferred Stock.
• The company's capital structure will be simplified by removing this class of outstanding securities.

Risks

• Forward-looking statements, including those concerning future shareholder distributions, are not guarantees and involve risks, uncertainties, and assumptions, as detailed in the company's SEC filings.

Future Outlook

The filing contains a general disclaimer regarding forward-looking statements, noting that actual results may differ materially from those expressed and cautioning investors not to unduly rely on such statements. It does not provide specific forward-looking guidance related to the financial impact of this redemption beyond the cessation of dividend payments on the redeemed shares.

Industry Context

The redemption of preferred stock is a common capital management strategy employed by financial institutions. It can signal a company's confidence in its financial position, a desire to optimize its capital structure, or an opportunity to refinance at a lower cost of capital, especially if market interest rates have declined or the company's credit profile has improved since the preferred stock was issued.

Stakeholder Impact

• Holders of Series B Preferred Stock and Series B Depositary Shares will receive the specified redemption price for their shares on January 2, 2026, and these securities will no longer be outstanding.
• Common shareholders may benefit from a simplified capital structure and the elimination of future dividend payments on the Series B Preferred Stock.

Next Steps

• The redemption of all outstanding Series B Preferred Stock and related depositary shares will occur on January 2, 2026.

Key Dates

Keywords

Raymond James, RJF, Preferred Stock, Redemption, Depositary Shares, Capital Management, Fixed-to-Floating Rate, Corporate Action