Summary
U.S. Bancorp (USB) filed an 8-K on May 10, 2010, to announce the commencement of an exchange offer. The company is offering to exchange up to 1,250,000 of its Depositary Shares, each representing an interest in its Series A Non-Cumulative Perpetual Preferred Stock, for any and all outstanding Trust Securities of USB Capital IX. This exchange offer aims to simplify the company's capital structure by allowing U.S. Bancorp to retire debt-like preferred securities and replace them with its own preferred stock. The underlying preferred stock is being registered under the Securities Act of 1933, indicating a formal process to facilitate this transaction. Investors holding the USB Capital IX Trust Securities are being given an opportunity to convert their holdings into U.S. Bancorp's own preferred equity.
Key Highlights
- 1U.S. Bancorp is initiating an exchange offer for its Depositary Shares, representing Preferred Stock, on May 10, 2010.
- 2The offer targets up to 1,250,000 Depositary Shares.
- 3The exchange offer is for any and all outstanding 6.189% Fixed-to-Floating Rate Normal Income Trust Securities of USB Capital IX.
- 4This move is designed to simplify the company's capital structure.
- 5The underlying Preferred Stock is being registered under the Securities Act of 1933.
- 6A press release detailing the exchange offer was issued and attached as an exhibit.