Summary
This 8-K filing by BB&T Corporation (the registrant, which would later become Truist Financial Corp.) on May 15, 2012, announces the company's decision to redeem several series of its trust preferred securities. The redemptions are being made at BB&T's option, as these securities are callable. A key implication for investors and the company is that these trust preferred securities will no longer count towards BB&T's Tier 1 capital under regulatory guidelines upon redemption notice. This action aligns with BB&T's capital plan submitted to the Federal Reserve Board and will be funded using existing corporate reserves.
Key Highlights
- 1BB&T Corporation is redeeming multiple series of trust preferred securities.
- 2The redemptions are optional, as the securities are callable by BB&T.
- 3Redeemed trust preferred securities will cease to qualify as Tier 1 capital for regulatory purposes.
- 4This action is in line with BB&T's capital plan submitted to the Federal Reserve Board.
- 5The redemptions will be funded by BB&T's general corporate reserves.
- 6Specific redemption dates range from June 15, 2012, to June 30, 2012.
- 7Securities will be redeemed at 100% of their principal amount plus accrued distributions.