Astoria Financial (AF) in Lake Success, N.Y., is planning to redeem $125 million in debt.
The $16.5 billion-asset company said Wednesday that it will use proceeds from last month's sale of preferred shares to redeem trust-preferred debt on which it pays higher interest. It will pay a 3% premium on the $125 million liquidation amount, plus accumulated interest, to redeem the securities on May 10.
Astoria pays 9.75% for the debt. In comparison, it will pay 6.15% interest for the $150 million in depositary shares it sold last month.