United Community Banks, Inc. Announces Pricing of $100 Million Offering of Non-Cumulative Perpetual Preferred Stock Depositary Shares

GREENVILLE, S.C., June 03, 2020 (GLOBE NEWSWIRE) -- United Community Banks, Inc. (NASDAQ: UCBI) (“United”) today announced that it priced an underwritten public offering of 4,000,000 depositary shares with a liquidation value of $25.00 per share (the “Depositary Shares”) for gross proceeds of $100 million before deducting underwriting discounts and other estimated offering expenses.  Each Depositary Share represents a 1/1000th interest in a share in United’s 6.875% Non-Cumulative Perpetual Preferred Stock, Series I, $1.00 par value, with a liquidation preference of $25,000 per share (the “Series I Preferred Stock”).  The offering is expected to close on June 10, 2020, subject to customary closing conditions.

When, as and if declared by the board of directors or a duly authorized committee of the board, United will pay cash dividends on the Series I Preferred Stock, at an annual rate of 6.875% on the liquidation preference amount of $25,000 per share of Series I Preferred Stock (equivalent to $25.00 per Depositary Share per year), quarterly in arrears, on March 15, June 15, September 15 and December 15 of each year (each, a “dividend payment date”), beginning on September 15, 2020. Dividends on the Series I Preferred Stock will not be cumulative and will not be mandatory. United may redeem the Series I Preferred Stock in whole or in part, from time to time, on or after September 15, 2025, or following certain events involving capital treatment as described in the prospectus supplement and accompanying prospectus relating to the offering, at a cash redemption price equal to $25,000 per share of Series I Preferred Stock (equivalent to $25 per Depositary Share) plus any declared and unpaid dividends, and without accumulation of any undeclared dividends, to, but excluding, the redemption date. The Series I Preferred Stock will not have voting rights, except in the limited circumstances described in the prospectus supplement and accompanying prospectus relating to the offering, and as specifically required by Georgia law.

Application will be made to list the Depositary Shares representing interests in the Series I Preferred Stock on the Nasdaq Global Select Market (“Nasdaq”) under the symbol “UCBIO”.  If approved for listing, it is expected that the Depositary Shares will begin trading on Nasdaq within 30 days after they are first issued.

Keefe, Bruyette & Woods, A Stifel Company, BofA Securities, Morgan Stanley and Wells Fargo Securities are acting as joint book-running managers and US Bancorp is acting as co-manager.