Fifth Third Bancorp Announces Redemption of Senior Notes due March 15, 2022

Rhea-AI Summary

Fifth Third Bancorp (NASDAQ: FITB) has announced a redemption notice for all outstanding 3.500% fixed rate senior notes due March 15, 2022, totaling $500 million. The redemption is scheduled for February 13, 2022, at 100% of the principal amount plus accrued interest. This move is aligned with the company's financial strategy as it continues to manage its liabilities efficiently.

Positive

• Redemption of $500 million senior notes can strengthen capital structure.
• Efficient management of liabilities may enhance investor confidence.

Negative

• Redemption could indicate potential cash flow constraints if not managed properly.

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bancorp (Nasdaq: FITB) today announced that it has submitted a redemption notice to the trustee for redemption of all of its outstanding 3.500% fixed rate senior notes due March 15, 2022 (CUSIP 316773CL2) issued in the principal amount of $500 million. The notes will be redeemed on February 13, 2022 pursuant to their terms and conditions for an amount equal to 100% of the principal amount plus accrued and unpaid interest to, but excluding, the redemption date. The redemption price will become due and payable on the first business day after the redemption date (with the same force and effect as if made on the redemption date).

About Fifth Third Bancorp

Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. As of September 30, 2021, the Company had $208 billion in assets and operated 1,100 full-service Banking Centers, and 2,336 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina and South Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending, and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of September 30, 2021, had $541 billion in assets under care, of which it managed $61 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the NASDAQ® Global Select Market under the symbol “FITB.”

View source version on businesswire.com: https://www.businesswire.com/news/home/20211208005108/en/

Chris Doll (Investor Relations)

Christopher.Doll@53.com | 513-534-2345

Ed Loyd (Media Relations)

Edgar.Loyd@53.com | 513-534-6397

Source: Fifth Third Bancorp

FAQ

What is the significance of Fifth Third Bancorp redeeming its senior notes?

It allows Fifth Third Bancorp to manage its liabilities and potentially improve its capital structure.

When will the senior notes from Fifth Third Bancorp be redeemed?

The senior notes will be redeemed on February 13, 2022.

How much is Fifth Third Bancorp redeeming in senior notes?

Fifth Third Bancorp is redeeming $500 million in senior notes.

What percentage of the principal amount will Fifth Third Bancorp pay for the redemption?

Fifth Third Bancorp will pay 100% of the principal amount plus accrued interest.