Summary
US BancORP (USB) announced on December 15, 2021, its intention to redeem all outstanding shares of its Series F Non-Cumulative Perpetual Preferred Stock and corresponding depositary shares. The redemption will occur on January 15, 2022, at a price of $25,000 per share for the preferred stock, which equates to $25 per depositary share. This action represents a significant capital management decision by the company, effectively retiring a specific series of preferred equity. Investors holding the Series F Preferred Stock or Series F Depositary Shares will receive the specified redemption price on the redemption date. Notably, because the redemption date coincides with a dividend payment date, the redemption price will not include any declared but unpaid dividends; these will be paid separately in the usual course. This event should be evaluated by investors in the context of USB's overall capital structure and strategic priorities.
Key Highlights
- 1US Bancorp (USB) is redeeming all outstanding Series F Non-Cumulative Perpetual Preferred Stock and associated depositary shares.
- 2The redemption date is scheduled for January 15, 2022.
- 3The redemption price for the Series F Preferred Stock is $25,000 per share.
- 4The redemption price for each Series F Depositary Share is $25.
- 5The redemption price does not include declared and unpaid dividends, which will be paid separately.
- 6The company is acting in accordance with the existing Deposit Agreement dated January 23, 2012.