Summary
BB&T Corporation (the "Company") announced the closing of a public offering of $600,000,000 aggregate principal amount of BB&T Capital Trust II's 6.75% Trust Preferred Securities on June 7, 2006. These securities represent preferred beneficial interests in the Trust, which was formed to facilitate this financing. The proceeds from the sale of these Capital Securities were used by the Trust to purchase junior subordinated debentures from BB&T Corporation. This transaction represents a significant capital raise for the Company through a structured financing vehicle. The junior subordinated debentures issued to the Trust carry a 6.75% interest rate, payable semi-annually, with provisions for interest payment deferrals by the Company. These debentures mature in 2036, offering long-term funding. BB&T Corporation also provided a Guarantee Agreement, which offers a limited guarantee of payments on the Capital Securities, contingent upon the Trust having sufficient funds available.
Key Highlights
- 1BB&T Corporation closed a $600 million public offering of Trust Preferred Securities through BB&T Capital Trust II.
- 2The offering features 6.75% Trust Preferred Securities with a maturity date of June 7, 2036.
- 3Proceeds from the offering were used by the Trust to purchase $600,010,000 in junior subordinated debentures from BB&T Corporation.
- 4The Company has the option to defer interest payments on the debentures for up to ten consecutive semi-annual periods.
- 5BB&T Corporation provided a Guarantee Agreement, which offers a limited guarantee of payments on the Capital Securities.
- 6The securities were registered under a shelf registration statement on Form S-3.