Summary
This 8-K filing from BB&T Corporation (now Truist Financial Corp. after the merger with SunTrust) on August 16, 2012, announces the redemption of several series of trust preferred securities. These securities were assumed by BB&T as part of its acquisition of BankAtlantic, which was completed on July 31, 2012. The total principal amount to be redeemed is $185 million across various trusts and redemption dates in September 2012. Investors should note that these redemptions are funded by general corporate reserves, indicating BB&T's financial capacity to manage its debt obligations. The redemption price will be the liquidation amount of $1,000 per security plus any accrued and unpaid distributions. This action signals BB&T's strategic decision to eliminate these specific trust preferred securities, likely to streamline its capital structure post-acquisition and potentially reduce future interest expenses.
Key Highlights
- 1BB&T Corporation is redeeming $185 million in trust preferred securities.
- 2The redemption is a result of the acquisition of BankAtlantic, completed on July 31, 2012.
- 3Redemption dates for the securities are scheduled for September 15, 2012, September 26, 2012, and September 30, 2012.
- 4The redemptions are funded by BB&T's general corporate reserves.
- 5The securities being redeemed were issued by various trusts (BBC Capital Statutory Trusts, BBX Capital Trust).
- 6Each series of trust preferred securities was callable on the specified redemption dates.
- 7The redemption price will be the liquidation amount of $1,000 per security plus accrued distributions.