8-KOther EventsExhibits & Filings

FIFTH THIRD BANCORP 8-K Report, Corporate Update (Aug 28, 2024)

Filed August 28, 2024For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp announced through its subsidiary, Fifth Third Bank, National Association, the early redemption of its outstanding 5.852% Fixed-To-Floating Rate Senior Notes due October 27, 2025. The redemption is scheduled for October 27, 2024, and will encompass the entire $1.0 billion principal amount of these notes, plus any accrued and unpaid interest. This action is being taken pursuant to the optional redemption provisions within the notes' terms and conditions, allowing the Bank to retire this debt prior to its scheduled maturity. This redemption signals a proactive approach by Fifth Third Bank to manage its debt obligations. Investors should note that the redemption price will be calculated according to the note's terms and will include the principal amount and any interest accrued up to, but not including, the redemption date. Following this redemption, none of the 2022 Fixed-To-Floating Rate Bank Notes will remain outstanding, simplifying the company's debt structure.

Key Highlights

  • 1Fifth Third Bancorp's subsidiary, Fifth Third Bank, has issued a notice to redeem all outstanding 5.852% Fixed-To-Floating Rate Senior Notes due October 27, 2025.
  • 2The redemption date is set for October 27, 2024, which is approximately one year before the notes' original maturity date.
  • 3The total principal amount of the notes to be redeemed is $1.0 billion.
  • 4The redemption price will include the principal amount plus any accrued and unpaid interest up to the redemption date.
  • 5The redemption is being executed under the optional redemption provisions of the senior notes.
  • 6Upon redemption, no 2022 Fixed-To-Floating Rate Bank Notes will remain outstanding.

Frequently Asked Questions

Fifth Third Bank is redeeming these senior notes early as permitted by the optional redemption provisions within the notes' terms. This allows the bank to manage its debt structure proactively, potentially taking advantage of current market conditions or seeking to reduce interest expenses.

The redemption involves the full $1.0 billion principal amount of the 5.852% Fixed-To-Floating Rate Senior Notes due 2025, plus any accrued and unpaid interest up to October 27, 2024. The exact redemption price will be calculated as per the note's terms.

The redemption date is October 27, 2024. Holders of the notes will receive their redemption payment upon presentation and surrender of the notes to the paying agent, The Bank of New York Mellon Trust Company, N.A., on or after the first business day following the redemption date.

This redemption will reduce Fifth Third Bancorp's outstanding debt by $1.0 billion, plus accrued interest. This could positively impact leverage ratios and potentially reduce future interest expenses, depending on how the funds are replaced or if overall debt is reduced.