Summary
This 8-K filing by U.S. Bancorp (USB) on March 3, 2017, primarily announces the company's decision to redeem all outstanding shares of its Series G Non-Cumulative Perpetual Preferred Stock and its corresponding Series G Depositary Shares. The redemption is set to occur on April 15, 2017, with the payment date being April 17, 2017, due to April 15th not being a business day. This action impacts investors holding Series G Preferred Stock or Depositary Shares, as their holdings will be redeemed at a specified price. Importantly, the redemption occurs on a dividend payment date, meaning accrued dividends for the current quarter will be paid separately to shareholders of record, ensuring they receive their expected quarterly income in addition to the redemption value. This proactive redemption is a significant event for holders of this specific series of preferred stock.
Key Highlights
- 1U.S. Bancorp is redeeming all outstanding shares of its Series G Non-Cumulative Perpetual Preferred Stock.
- 2The redemption also applies to all Series G Depositary Shares.
- 3The redemption date is scheduled for April 15, 2017, with payment on April 17, 2017.
- 4The redemption price is $25,000 per share of Series G Preferred Stock, equivalent to $25 per Series G Depositary Share.
- 5The redemption price does not include accrued dividends as the redemption date is also a dividend payment date.
- 6Regular quarterly dividends for the period ending April 15, 2017, will be paid separately to shareholders of record on March 31, 2017.
- 7This event is being communicated via a press release dated March 3, 2017, attached as an exhibit.