City National Corp. in Los Angeles said it will raise as much as $300 million in senior notes so that it can extinguish more expensive debt issued late last year.
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The $21.2 billion-asset company announced late Wednesday that it has priced the notes at 99.7% of the principal amount.
The 10-year note offering is expected to close Monday. The debt would carry a 5.25% coupon that would be paid semiannually.
The banking company said it would use the proceeds to redeem the $250 million of trust-preferred securities it issued in December. That debt carries a 9.625% coupon. It said the remainder of the proceeds would be used for general corporate purposes.
