Raymond James Financial announced that it will redeem all 80,500 shares of its 6.375% Fixed‑to‑Floating Rate Series B Non‑Cumulative Perpetual Preferred Stock, each priced at $1,000, along with the related depositary shares valued at $25 each. Computershare Inc. will act as the redemption agent, and the transaction will be completed on January 2, 2026.
The company’s balance sheet is already strong, with a debt‑to‑equity ratio of 0.34 and a net margin of 15.42%. The redemption is being funded entirely from cash on hand, so no new debt or equity issuance is required. By retiring the preferred equity, Raymond James reduces its ongoing dividend obligation and improves its leverage profile without affecting common equity or earnings.
The 6.375% dividend on the Series B preferred stock is relatively high compared with current market rates, and the company has determined that the cost of capital associated with this security outweighs the benefits of retaining it. Removing the preferred layer simplifies the capital structure, lowers the overall cost of capital, and frees capital that can be deployed to support organic growth initiatives or returned to shareholders. The move is expected to strengthen the company’s capital structure and enhance long‑term shareholder value.
The redemption also retires the converted security that originated from the TriState Capital merger, further streamlining Raymond James’s equity stack. Market reaction has been muted, indicating that the transaction is viewed as a routine financial maneuver rather than a catalyst for volatility.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.