First Horizon National Corp. unveiled terms of its larger planned sale of $500 million in four-year senior notes Thursday, part of a larger capital raising to repay the government's bailout funds.
The parent of First Tennessee Bank said the notes will carry an annual interest rate of 5.375%.
First Horizon announced plans Monday to sell at least $250 million in stock, along with $400 million in debt, to help pay back the $867 million it has due under the Troubled Asset Relief Program, and to redeem another $103 million in debt.
Regional banks are the biggest remaining holders of Tarp funds after large banks sprinted to pay back the loans to escape heightened regulation. Repayments are expected to increase next year.
Its shares closed Thursday at $10.67, up 2 cents. The stock is down 15% this year.
