Summary
U.S. Bancorp (USB) announced on December 9, 2020, its intention to redeem all outstanding shares of its Series H Non-Cumulative Perpetual Preferred Stock and the corresponding depositary shares. The redemption is scheduled for January 15, 2021, with a redemption price of $25,000 per share of Series H Preferred Stock (or $25 per depositary share). This action, taken in accordance with the Deposit Agreement, indicates a strategic financial move by the company. Importantly for investors holding Series H Preferred Stock or Series H Depositary Shares, the redemption price will not include any declared and unpaid dividends, as the redemption date coincides with a dividend payment date. The company will separately pay the regular quarterly dividend for the period ending January 15, 2021, on the same date to eligible shareholders of record as of December 31, 2020. This redemption is a significant event for holders of this specific class of preferred stock.
Key Highlights
- 1U.S. Bancorp is redeeming all 20,000 outstanding shares of its Series H Non-Cumulative Perpetual Preferred Stock.
- 2The redemption date is set for January 15, 2021.
- 3The redemption price is $25,000 per share of Series H Preferred Stock, which equates to $25 per Series H Depositary Share.
- 4Declared and unpaid dividends will be paid separately on the redemption date, as it is also a dividend payment date.
- 5A regular quarterly dividend for the period up to January 15, 2021, will be paid on January 15, 2021, to shareholders of record as of December 31, 2020.
- 6The redemption is being executed in accordance with the company's existing Deposit Agreement dated May 2, 2013.