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

Rhea-AI Summary

Citizens Bank announced the early redemption of its outstanding $350 million Fixed/Floating Rate Senior Notes. The notes, originally due January 26, 2026, will be redeemed on January 27, 2025. The redemption price will be 100% of the principal amount plus any accrued and unpaid interest up to the redemption date. After January 27, 2025, the notes will cease to be outstanding, and no further interest will accrue. The redemption payment will be processed through The Depository Trust Company.

Positive

• Early debt retirement demonstrates strong financial position
• Full principal repayment ($350M) indicates healthy cash reserves

Negative

• Loss of potential interest income for noteholders due to early redemption

Insights

Financial Analyst

The $350 million senior notes redemption by Citizens Bank represents a strategic liability management move in the current interest rate environment. The original notes carrying a 5.284% fixed/floating rate are being redeemed a year ahead of their 2026 maturity, suggesting the bank sees opportunities to refinance at potentially more favorable rates or optimize its capital structure.

This early redemption at par value (100% of principal) indicates Citizens' strong liquidity position and proactive approach to debt management. The timing aligns with market expectations of potential Fed rate cuts in 2025, which could allow the bank to issue new debt at lower rates if needed. The removal of these notes from Citizens' balance sheet will reduce interest expenses, though the impact is relatively modest given the size relative to Citizens' $20.1 billion market cap.

For investors, this move signals management's confidence in the bank's cash position and their outlook on interest rates. While not transformative for Citizens' overall financial profile, it demonstrates prudent financial management and could marginally improve the bank's interest coverage ratios and profitability metrics going forward.

PROVIDENCE, R.I.--(BUSINESS WIRE)-- Citizens Bank, N.A. today announced the redemption on January 27, 2025 (the “Redemption Date”) all of its outstanding $350,000,000 aggregate principal amount 5.284% Fixed/Floating Rate Senior Notes due January 26, 2026 (CUSIP No. 75524KQB3) (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 $219.7 billion in assets as of September 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 3,100 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 Twitter, LinkedIn or Facebook.

CFG-IR

View source version on businesswire.com: https://www.businesswire.com/news/home/20250115668106/en/

Media: Peter Lucht - 781.655.2289

Investors: Kristin Silberberg - 203.900.6854

Source: Citizens Bank, N.A.

FAQ

What is the total value of Citizens Bank (CFG) notes being redeemed in January 2025?

Citizens Bank is redeeming $350 million in aggregate principal amount of 5.284% Fixed/Floating Rate Senior Notes.

When will Citizens Bank (CFG) redeem its 5.284% Fixed/Floating Rate Senior Notes?

The notes will be redeemed on January 27, 2025, ahead of their original maturity date of January 26, 2026.

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

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

How will Citizens Bank (CFG) process the note redemption payment?

The redemption payment will be processed through the facilities of The Depository Trust Company.