#United States #WesBanco #Preferred Stock #Financial Services #Wheeling

Wesbanco's Strategic $230 Million Stock Offering

Wheeling, W.Va., Sept. 10, 2025 - Wesbanco, Inc., a significant player in the regional banking sector, has recently made headlines by announcing the pricing of a substantial $230 million public offering dedicated to depositary shares. This move is expected to bolster the company's financial stability and strategically position them in the competitive financial services landscape.

Offering Details

Wesbanco's offering consists of 9,200,000 depositary shares, with each share representing a 1/40th interest in a share of 7.375% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. The liquidation preference is set at $1,000 per share, which translates to $25 per depositary share. This preferred stock is designed to offer attractive dividend returns, declared quarterly, starting from January 1, 2026, at an annual rate of 7.375% until October 1, 2030.

Following this period, dividends will be adjusted based on the five-year treasury rate, plus an additional margin of 3.795%. This structure not only provides immediate financial benefits but also introduces a variable component that could be favorable in an evolving interest rate environment.

Strategic Use of Proceeds

Wesbanco has a clear strategy for the use of the net proceeds from this offering. Approximately $150 million will be allocated to redeem the existing 6.75% Series A Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock. In addition, $50 million is earmarked for repaying the outstanding 4.0% Fixed-To-Floating Rate Subordinated Notes due September 30, 2030. These steps are part of Wesbanco’s broader strategy aimed at optimizing its capital structure while enhancing overall market competitiveness.

The remaining funds will be directed towards general corporate purposes, which may include debt repayment, capital expenditures, and possibly funding acquisitions. This diverse utilization of the funds underscores Wesbanco’s commitment to leveraging capital for sustainable growth while reinforcing its operational capabilities.

Anticipated Market Impact

The offering is expected to conclude around September 17, 2025, pending customary closing conditions. As the depositary shares are likely to be listed on the Nasdaq Global Select Market under the symbol WSBCPB, it positions Wesbanco favorably in the eyes of both institutional and retail investors. By enhancing liquidity and dividend offerings, the company is setting itself up not just for stability but for growth.

The joint book-running managers spearheading this initiative are notable names, including Keefe, Bruyette & Woods, RBC Capital Markets, and Raymond James, all of whom carry a strong reputation within the investment community.

Conclusion

Wesbanco’s initiative to offer $230 million in preferred stock indicates a proactive approach in managing its financial health while preparing to meet future opportunities in the ever-evolving financial landscape. This offering not only aims to lower existing debt obligations but also positions the company to provide more competitive rates and services to its customer base. With a history spanning over 150 years and total assets amounting to $27.6 billion, Wesbanco continues to influence the banking sector effectively, attracting both loyal clientele and new investors alike.

Investors interested in this offering are encouraged to review the associated prospectus, which includes detailed insights into Wesbanco’s financial performance and strategic outlook.