Summary
Fifth Third Bancorp (FITB) announced on September 13, 2019, its intention to redeem $22,500,000 in Floating Rate Preferred Securities issued by MB Financial Capital Trust VI. The redemption is scheduled for October 30, 2019, and will be funded using the Company's available excess cash. This action indicates a proactive approach by Fifth Third Bancorp to manage its capital structure and potentially optimize its cost of capital. Investors should note that the redemption of these trust preferred securities suggests the Company may no longer find these instruments as beneficial or may be seeking to reduce its leverage or simplify its financial obligations. The use of excess cash for this redemption signals a healthy liquidity position for the Company at the time of the filing.
Key Highlights
- 1Fifth Third Bancorp (FITB) is redeeming $22,500,000 of MB Financial Capital Trust VI Floating Rate Preferred Securities.
- 2The redemption date is set for October 30, 2019.
- 3The redemption will be financed using the Company's excess cash.
- 4This action is being communicated via a press release dated September 13, 2019.
- 5The filing is an 8-K, indicating a material event.
- 6The Company is proactively managing its capital structure.