What is the total value of the Series I Preferred Stock being redeemed?

The total redemption value for all 30,000 outstanding shares of Series I Preferred Stock is $750 million (30,000 shares * $25,000 per share).

Will I receive any dividends in addition to the redemption price?

Yes, the regular quarterly dividend for the period ending April 15, 2021, will be paid separately on April 15, 2021, to shareholders of record as of March 31, 2021. This dividend is in addition to the stated redemption price.

What is the purpose of this redemption?

While the filing doesn't explicitly state the purpose, redemptions of preferred stock are often done to manage the company's capital structure, reduce interest expenses if the preferred stock carries a high dividend rate, or to take advantage of lower interest rate environments by issuing new debt or equity on more favorable terms.

What action do Series I Preferred Stock shareholders need to take?

Shareholders who hold Series I Depositary Shares should refer to the notice provided by the Depositary. Typically, for shares held through a brokerage, no direct action is required as the redemption will be handled automatically. Holders of certificated shares may need to follow instructions from the Depositary to surrender their certificates.

US BANCORP \DE\ 8-K SEC Disclosure

Summary

U.S. Bancorp (USB) has announced its intention to redeem all outstanding shares of its Series I Non-Cumulative Perpetual Preferred Stock and the corresponding depositary shares. This redemption, scheduled for April 15, 2021, involves 30,000 shares of Series I Preferred Stock, with a redemption price of $25,000 per share (or $1,000 per depositary share). The redemption price will not include any declared but unpaid dividends, as the redemption date coincides with a dividend payment date. The regular quarterly dividend for the period ending April 15, 2021, will be paid separately to shareholders of record on March 31, 2021.

Key Highlights

1U.S. Bancorp is redeeming all 30,000 outstanding shares of its Series I Non-Cumulative Perpetual Preferred Stock.
2The redemption is set to occur on April 15, 2021.
3The redemption price is $25,000 per share of Series I Preferred Stock, or $1,000 per Series I Depositary Share.
4The redemption price excludes declared and unpaid dividends, as the redemption date is also a dividend payment date.
5The final quarterly dividend will be paid separately on April 15, 2021, to shareholders of record as of March 31, 2021.
6The company has provided notice to the Depositary in accordance with the Deposit Agreement dated November 23, 2015.

US BANCORP \DE\ 8-K Report, Corporate Update (Mar 4, 2021)

Summary

Key Highlights

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