What is the redemption price for the Series H Depositary Shares?

The redemption price is $25 per depositary share. This is equivalent to $25,000 per share of Series H Preferred Stock, as each depositary share represents a 1/1,000th interest.

What happens to the dividends on the Series H Preferred Stock after redemption?

Regular dividends will be paid to holders of record on the applicable record date. However, all dividends on the Series H Preferred Stock will cease to accrue on and after the redemption date of June 1, 2021.

Why is Truist redeeming this preferred stock?

While the filing doesn't explicitly state the reason, companies typically redeem preferred stock to reduce interest expenses, optimize their capital structure, or because market conditions make it advantageous to refinance at lower rates or replace with a different form of capital.

TRUIST FINANCIAL CORP 8-K SEC Disclosure

Q: What is being redeemed and when?

Truist Financial Corporation is redeeming all of its outstanding 5.625% Series H Non-Cumulative Perpetual Preferred Stock and the corresponding Series H Depositary Shares on June 1, 2021.

Summary

Truist Financial Corporation (TFC) announced on April 29, 2021, its decision to redeem all outstanding shares of its 5.625% Series H Non-Cumulative Perpetual Preferred Stock and the associated depositary shares. This action signifies a strategic move by the company to manage its capital structure and potentially reduce future interest expenses associated with this preferred stock. The redemption is scheduled to occur on June 1, 2021, which is also the dividend payment date.

Key Highlights

1Truist Financial Corp. is redeeming all outstanding Series H Preferred Stock and Series H Depositary Shares.
2The redemption price for each depositary share is $25, translating to $25,000 per share of preferred stock.
3The redemption date is set for June 1, 2021, coinciding with the regular dividend payment date.
4All 18,600,000 outstanding Series H Depositary Shares will be redeemed.
5Dividends on the Series H Preferred Stock will cease to accrue on and after the redemption date.
6This redemption is an "Other Event" disclosed via a press release.

TRUIST FINANCIAL CORP 8-K Report, Corporate Update (Apr 29, 2021)

Summary

Key Highlights

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