Summary
Truist Financial Corporation (TFC) announced its intention to redeem all outstanding shares of its Perpetual Preferred Stock, Series K, and the related depositary shares. This redemption, scheduled for March 16, 2020, is in accordance with the company's articles of incorporation, effective December 6, 2019. This action signifies a strategic move to streamline its capital structure or potentially replace higher-cost preferred equity with other forms of capital. Investors holding these preferred shares should be aware that their ownership will cease on the redemption date, with the primary right remaining being the receipt of the redemption price.
Key Highlights
- 1TFC announced the redemption of all Series K Perpetual Preferred Stock and related depositary shares.
- 2The redemption date is set for March 16, 2020.
- 3The redemption is in accordance with the company's Articles of Amendment filed on December 6, 2019.
- 4All rights associated with the redeemed preferred stock will cease upon redemption, except for the right to the redemption price.
- 5This action may indicate a shift in Truist's capital management strategy or cost-optimization efforts.
- 6A press release detailing the redemption notice is attached as an exhibit.