BBVA to Issue $1B Convertible Preferred Securities at 7.125%

BANCO BILBAO VIZCAYA ARGENTARIA, S.A. (BBVA) announced an issuance of $1 billion in preferred securities contingently convertible into ordinary shares. These securities are expected to qualify as Additional Tier 1 Capital and will accrue distributions at a rate of 7.125% per annum until May 8, 2033. After this period, the distribution rate will reset based on the 5-year UST plus a margin of 298.5 basis points. The issuance is not directed towards retail investors, and BBVA plans to request listing of the securities on the New York Stock Exchange.