Fifth Third Bank Announces Redemption of Senior Bank Notes due October 1, 2021

Rhea-AI Summary

Fifth Third Bancorp (NASDAQ: FITB) announced the redemption of all outstanding 2.875% fixed rate senior notes, amounting to $850 million, due October 1, 2021. The redemption will occur on September 1, 2021, at 100% of the principal amount plus accrued interest. As of March 31, 2021, Fifth Third Bancorp had $207 billion in assets and operated 1,098 Banking Centers and 2,383 ATMs across multiple states. The bank is a major player in asset management, handling $464 billion in assets under care and $58 billion for clients through its advisory services.

Positive

• Successful redemption of $850 million in senior notes will alleviate future interest obligations.
• Maintaining significant assets of $207 billion positions the company strongly in the market.

Negative

• The redemption of senior notes may reflect previous debt management challenges.
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Fifth Third Bancorp (Nasdaq: FITB) today announced that its subsidiary, Fifth Third Bank, National Association (the “Bank”), has submitted a redemption notice to the issuing and paying agent for redemption of all of the Bank’s outstanding 2.875% fixed rate senior notes due October 1, 2021 (CUSIP 31677QBC2) issued in the principal amount of $850 million. The Bank notes will be redeemed on September 1, 2021 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.

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 March 31, 2021, the Company had $207 billion in assets and operated 1,098 full-service Banking Centers, and 2,383 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 53,000 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 March 31, 2021, had $464 billion in assets under care, of which it managed $58 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/20210707005242/en/

FAQ

What is the significance of Fifth Third Bancorp's recent senior notes redemption?

The redemption of $850 million in senior notes indicates Fifth Third Bancorp's strategy to manage its debt and reduce future interest expenses.

When will Fifth Third Bancorp redeem its senior notes?

Fifth Third Bancorp will redeem its senior notes on September 1, 2021.

How much in assets does Fifth Third Bancorp manage?

As of March 31, 2021, Fifth Third Bancorp manages $464 billion in assets.

What are the terms of the senior notes being redeemed?

The senior notes, issued at a fixed rate of 2.875%, will be redeemed at 100% of the principal plus accrued interest.