Fifth Third Bancorp Prices $250M Preferred Stock Offering
Ticker: FITBM · Form: 8-K · Filed: Jun 28, 2024 · CIK: 35527
Sentiment: neutral
Topics: capital-raise, preferred-stock, financing
Related Tickers: FITB
TL;DR
FITB priced $250M in preferred stock, raising capital.
AI Summary
Fifth Third Bancorp announced on June 26, 2024, that it has priced a public offering of 10,000,000 depositary shares, each representing a 1/1000th ownership interest in a share of its 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I. The company expects to receive gross proceeds of approximately $250 million from this offering.
Why It Matters
This offering allows Fifth Third Bancorp to raise capital, which can be used for various corporate purposes, potentially strengthening its financial position and supporting future growth initiatives.
Risk Assessment
Risk Level: low — The filing is a routine capital raise announcement with no immediate negative implications for the company.
Key Numbers
- $250 million — Gross Proceeds (From the preferred stock offering)
- 10,000,000 — Depositary Shares (Offered by Fifth Third Bancorp)
- 6.625% — Fixed Rate (For the preferred stock series)
Key Players & Entities
- Fifth Third Bancorp (company) — Registrant
- 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I (company) — Preferred Stock Offering
- $250 million (dollar_amount) — Gross Proceeds
- June 26, 2024 (date) — Pricing Date
FAQ
What is the purpose of the 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I offering?
The filing states the offering is for general corporate purposes, which can include funding growth initiatives or strengthening the company's capital structure.
What are the expected gross proceeds from this offering?
Fifth Third Bancorp expects to receive approximately $250 million in gross proceeds from the sale of 10,000,000 depositary shares.
When was the pricing of this preferred stock offering announced?
The pricing of the offering was announced on June 26, 2024.
What is the specific interest rate structure for the Series I preferred stock?
The Series I preferred stock has a fixed rate of 6.625% until a certain date, after which it becomes a floating rate.
What does each depositary share represent?
Each depositary share represents a 1/1000th ownership interest in a share of Fifth Third Bancorp's 6.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series I.
Filing Stats: 652 words · 3 min read · ~2 pages · Grade level 13.9 · Accepted 2024-06-28 08:40:30
Key Financial Figures
- $125 million — ifth Third would purchase approximately $125 million of its outstanding common stock. Fifth
- $35.63 — 11th agreement, at an average price of $35.63 per share. After the completion of th
Filing Documents
- fitb-20240626.htm (8-K) — 35KB
- fitb-20240626_g1.gif (GRAPHIC) — 8KB
- 0000035527-24-000181.txt ( ) — 244KB
- fitb-20240626.xsd (EX-101.SCH) — 4KB
- fitb-20240626_def.xml (EX-101.DEF) — 17KB
- fitb-20240626_lab.xml (EX-101.LAB) — 34KB
- fitb-20240626_pre.xml (EX-101.PRE) — 18KB
- fitb-20240626_htm.xml (XML) — 6KB
01 Other Events
Item 8.01 Other Events As previously announced, on June 11, 2024, Fifth Third Bancorp ("Fifth Third") entered into an accelerated share repurchase transaction with Morgan Stanley & Co. LLC ("Morgan Stanley") pursuant to which Fifth Third would purchase approximately $125 million of its outstanding common stock. Fifth Third is repurchasing the shares of its common stock as part of its 100 million share repurchase program previously announced in a press release on June 18, 2019 and a current report on Form 8-K filed on June 20, 2019. On June 26, 2024, Fifth Third was notified by Morgan Stanley that it had finished purchasing shares under the June 11th agreement. A total of 3,011,621 shares were repurchased upon execution of the agreement and an additional 496,767 shares were repurchased upon final settlement on June 27, 2024. In total, 3,508,388 shares were repurchased under the June 11th agreement, at an average price of $35.63 per share. After the completion of the June 11th agreement, Fifth Third has approximately 28.6 million shares of remaining repurchase authority under the aforementioned share repurchase program. Morgan Stanley and certain of its affiliates have performed, and in the future may perform, various financial advisory and other services for Fifth Third and Fifth Third's affiliates for which they have received, and may in the future receive, customary fees and expenses.
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. FIFTH THIRD BANCORP (Registrant) June 28, 2024 By: /s/ BRENNEN WILLINGHAM Brennen Willingham Senior Vice President and Treasurer