What is happening to Truist's Series F and Series G Preferred Stock?

Truist Financial Corporation is redeeming (calling back) all of its outstanding 5.200% Series F and 5.200% Series G Non-Cumulative Perpetual Preferred Stock, as well as the associated depositary shares, on March 1, 2021.

What will investors receive for their Series F or Series G Preferred Stock/Depositary Shares?

Investors will receive a redemption price of $25 per depositary share. For those holding the full preferred stock shares, this is equivalent to $25,000 per share of preferred stock.

When will the last dividend payment be made for these preferred stock series?

Regular dividends will be paid to holders of record on the applicable record date, but dividends on the Series F and Series G Preferred Stock will cease to accrue on and after the redemption date of March 1, 2021. Investors should ensure they are holders of record by the relevant date to receive the final dividend.

Why is Truist redeeming these preferred stock series?

The filing does not explicitly state the reason for the redemption. However, companies typically redeem preferred stock to refinance at a lower cost, simplify their capital structure, or remove less flexible terms. Investors should monitor future filings for any indication of the strategic rationale.

TRUIST FINANCIAL CORP 8-K SEC Disclosure

Summary

Truist Financial Corporation (TFC) has announced its intention to redeem all outstanding shares of its 5.200% Series F Non-Cumulative Perpetual Preferred Stock and 5.200% Series G Non-Cumulative Perpetual Preferred Stock, along with their corresponding depositary shares. This significant action, effective March 1, 2021, involves a redemption price of $25 per depositary share, equivalent to $25,000 per share of preferred stock. This redemption impacts a substantial number of shares, with 18 million Series F Depositary Shares and 20 million Series G Depositary Shares being called. Investors holding these specific preferred stock or depositary shares will receive the stated redemption price on the dividend payment date. Accrual of dividends on these series will cease on and after the redemption date, a key point for income-focused investors.

Key Highlights

1Truist Financial Corp (TFC) is redeeming all outstanding Series F and Series G Non-Cumulative Perpetual Preferred Stock.
2The redemption date is set for March 1, 2021.
3The redemption price is $25 per depositary share (or $25,000 per share of preferred stock).
4A total of 18 million Series F Depositary Shares and 20 million Series G Depositary Shares will be redeemed.
5Dividends on these specific preferred stock series will cease to accrue on and after the redemption date.
6This action is communicated via a press release dated January 20, 2021.

TRUIST FINANCIAL CORP 8-K Report, Corporate Update (Jan 20, 2021)

Summary

Key Highlights

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