Citizens Bank, N.A. Announces Redemption of Senior Notes

Rhea-AI Summary

Citizens Bank, N.A. has announced the redemption of its outstanding $600,000,000 aggregate principal amount 6.064% Fixed/Floating Rate Senior Notes due October 24, 2025. The redemption is scheduled for October 24, 2024, which is the Redemption Date. The redemption price will be 100% of the principal amount of the Notes redeemed, plus any accrued and unpaid interest up to, but excluding, the Redemption Date.

After the Redemption Date, the Notes will no longer be considered outstanding, and interest will cease to accrue. The redemption payment will be processed through The Depository Trust Company. This action affects Notes with the CUSIP No. 75524KPT5.

Positive

• Early redemption of $600 million in senior notes, potentially reducing future interest expenses
• Redemption at 100% of principal amount, indicating financial capability to manage debt obligations

Negative

• Reduction in available long-term debt financing, which may impact capital structure

Insights

Financial Analyst

Citizens Bank's decision to redeem $600 million in senior notes a year ahead of their maturity is a strategic move that impacts the company's debt structure and financial flexibility. This early redemption suggests strong liquidity and confidence in the bank's financial position. By retiring these notes, which carry a 6.064% interest rate, Citizens Bank may be looking to refinance at potentially lower rates or reduce its overall debt load.

The redemption at par value (100% of principal) indicates that the bank isn't incurring additional costs for early repayment. This action could lead to reduced interest expenses in the coming year, potentially boosting profitability. However, investors should consider the opportunity cost of this capital deployment versus other potential uses, such as investments in growth initiatives or shareholder returns.

While this move demonstrates financial prudence, its impact on the stock may be unless it's part of a broader strategy to optimize the bank's capital structure or signals upcoming strategic initiatives. Investors should monitor for any subsequent announcements regarding capital allocation or debt refinancing plans.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Bank, N.A. today announced the redemption on October 24, 2024 (the “Redemption Date”) all of its outstanding $600,000,000 aggregate principal amount 6.064% Fixed/Floating Rate Senior Notes due October 24, 2025 (CUSIP No. 75524KPT5) (the “Notes”). The redemption price for the Notes will be equal to 100% of principal amount of the Notes redeemed, plus any accrued and unpaid interest thereon to, but excluding, the Redemption Date.

On and after the Redemption Date, the Notes will no longer be deemed outstanding and interest will no longer accrue on the Notes. Payment of the redemption price for the Notes will be made through the facilities of The Depository Trust Company.

About Citizens Financial Group, Inc.

Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $219.9 billion in assets as of June 30, 2024. Headquartered in Providence, Rhode Island, Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a full-service customer contact center and the convenience of approximately 3,300 ATMs and approximately 1,000 branches in 14 states and the District of Columbia. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com or visit us on X (formerly Twitter), LinkedIn or Facebook.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241004165041/en/

Media: Peter Lucht - 781.655.2289

Investors: Kristin Silberberg - 203.900.6854

Source: Citizens Bank, N.A.

FAQ

When will Citizens Bank (CFG) redeem its 6.064% Fixed/Floating Rate Senior Notes?

Citizens Bank, N.A. will redeem its 6.064% Fixed/Floating Rate Senior Notes on October 24, 2024, which is the announced Redemption Date.

What is the redemption price for Citizens Bank's (CFG) Senior Notes due 2025?

The redemption price will be 100% of the principal amount of the Notes redeemed, plus any accrued and unpaid interest up to, but excluding, the Redemption Date.

What is the total aggregate principal amount of Senior Notes being redeemed by Citizens Bank (CFG)?

Citizens Bank, N.A. is redeeming $600,000,000 aggregate principal amount of its 6.064% Fixed/Floating Rate Senior Notes due October 24, 2025.

How will the redemption payment for Citizens Bank's (CFG) Senior Notes be processed?

The redemption payment for the Notes will be made through the facilities of The Depository Trust Company.