8-KMaterial AgreementsShareholder MattersCorporate Changes+2

US BANCORP \DE\ 8-K Report, Agreement Terminated (Dec 9, 2008)

Filed December 9, 2008For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

This Form 8-K filing by U.S. Bancorp (USB) on December 8, 2008, details significant corporate actions related to its shareholder rights plan and stock repurchase program. The company terminated its Amended and Restated Rights Agreement, causing its Series A Junior Participating Preferred Stock purchase rights to expire as of December 9, 2008. This action involved filing a Certificate of Elimination with the Delaware Secretary of State to remove references to this preferred stock from its Restated Certificate of Incorporation. Furthermore, U.S. Bancorp announced an approved new common stock repurchase program. This program allows for the repurchase of up to 20 million shares of common stock primarily for administration of employee benefit plans, including offsetting dilution, and is subject to the terms of the U.S. Department of the Treasury's Capital Purchase Program under TARP. The new program is set to expire on December 31, 2010, unless earlier terminated by the CFO.

Key Highlights

  • 1Termination of the U.S. Bancorp Amended and Restated Rights Agreement, with Series A Preferred Stock rights expiring on December 9, 2008.
  • 2Filing of a Certificate of Elimination to remove Series A Junior Participating Preferred Stock from the company's charter.
  • 3Approval of a new common stock repurchase program for up to 20,000,000 shares.
  • 4The new repurchase program is intended for employee benefit plan administration and to offset dilution.
  • 5Repurchases under the new program are contingent on compliance with the Troubled Asset Relief Program (TARP) Capital Purchase Program terms.
  • 6The new stock repurchase program has an expiration date of December 31, 2010.

Frequently Asked Questions

U.S. Bancorp terminated its Rights Agreement to remove the Series A Junior Participating Preferred Stock purchase rights. This means these rights have expired and are no longer in effect. For existing shareholders, this action simplifies the capital structure by eliminating these specific rights, which were originally designed as a poison pill defense mechanism.

The company has authorized a new program to repurchase up to 20 million shares of its common stock. This program is primarily for managing employee benefits plans and to counteract share dilution. Crucially, any repurchases must be conducted in accordance with the terms and conditions of the Capital Purchase Program, part of the U.S. government's Troubled Asset Relief Program (TARP), indicating the company's participation in and adherence to government financial support programs.

The elimination of Series A Junior Participating Preferred Stock from U.S. Bancorp's Restated Certificate of Incorporation is a direct consequence of the termination of the associated Rights Agreement. It formalizes the removal of this class of preferred stock and its associated rights from the company's foundational legal documents, streamlining corporate governance and reflecting the expiration of the rights plan.

The new common stock repurchase program is set to expire on December 31, 2010, unless the Chief Financial Officer of U.S. Bancorp determines to end it earlier.