Summary
Citizens Financial Group, Inc. (CFG) announced on February 24, 2021, a proposed public offering of a new series of Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series G. The company initially intended to use a portion of the proceeds from this offering to redeem all outstanding shares of its Series A Non-Cumulative Perpetual Preferred Stock on April 6, 2021. This move would have been a strategic step in managing its capital structure and preferred stock obligations. However, due to shifts in market conditions on the same day the offering was announced, CFG determined that proceeding with both the offering and the redemption would no longer be economically favorable. Consequently, the company has decided not to price the offering and, as a direct result, will not redeem the Series A Preferred Stock as originally planned on April 6, 2021. Investors should note that any future decisions regarding the redemption of the Series A Preferred Stock will be communicated separately through a Form 8-K filing or a press release.
Key Highlights
- 1Citizens Financial Group (CFG) announced a proposed public offering of Series G Preferred Stock.
- 2The intended use of proceeds was to redeem all outstanding Series A Preferred Stock.
- 3The redemption of Series A Preferred Stock was planned for April 6, 2021.
- 4CFG determined the offering and redemption were no longer economically desirable due to changing market conditions on February 24, 2021.
- 5The company decided not to price the Series G Preferred Stock offering.
- 6As a result, the redemption of Series A Preferred Stock on April 6, 2021, will not occur.
- 7Any future redemption plans for Series A Preferred Stock will be announced separately.