Huntington Announces Redemption Of All Depositary Shares Representing Interests In Series C Preferred Stock

Rhea-AI Summary

Huntington Bancshares (Nasdaq: HBAN) announced the redemption of all 4,000,000 outstanding depositary shares of its 5.875% Series C Non-Cumulative Perpetual Preferred Stock on October 15, 2021. Each depositary share will be redeemed at a price of $25.00, along with declared and unpaid dividends of $0.36725 per share, covering the period from July 15, 2021 to October 15, 2021. After the redemption date, dividends will cease to accrue. The shares are held through the Depository Trust Company, following standard redemption procedures.

Positive

• Redemption of 4,000,000 outstanding depositary shares enhances capital management.
• Investors will receive declared and unpaid dividends, offering returns before redemption.

Negative

• Post-redemption dividend cessation may concern income-focused investors.

COLUMBUS, Ohio, Sept. 13, 2021 /PRNewswire/ -- Huntington Bancshares Incorporated (Nasdaq:  HBAN) today announced the redemption on October 15, 2021 of all 4,000,000 outstanding depositary shares (Nasdaq: HBANN; CUSIP: 446150872), each representing a 1/40th interest in a share of Huntington's 5.875% Series C Non-Cumulative Perpetual Preferred Stock, par value $0.01 per share. 

The depositary shares will be redeemed at a redemption price of $25.00 per depositary share (equivalent to $1,000 per share of Series C Preferred Stock). Holders of the depositary shares will also receive declared and unpaid dividends of $0.36725 per depositary share (equivalent to $14.69 per share of Series C Preferred Stock) for the period beginning on July 15, 2021 to, but not including, October 15, 2021.  On and after the redemption date, all dividends on the shares of Series C Preferred Stock will cease to accrue.  The depositary shares are held through the Depository Trust Company ("DTC") and will be redeemed in accordance with the procedures of DTC. 

About Huntington
Huntington Bancshares Incorporated (Nasdaq: HBAN) is a $175 billion asset regional bank holding company headquartered in Columbus, Ohio.  Founded in 1866, The Huntington National Bank and its affiliates provide consumers, small and middle-market businesses, corporations, municipalities, and other organizations with a comprehensive suite of banking, payments, wealth management, and risk management products and services.  Huntington operates more than 1,200 branches in 12 states, with certain businesses operating in extended geographies.  Visit Huntington.com for more information.

 

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SOURCE Huntington Bancshares Inc.

FAQ

What is the date for the redemption of Huntington Bancshares depositary shares?

The redemption date for Huntington Bancshares depositary shares is October 15, 2021.

What is the redemption price for Huntington's depositary shares?

The redemption price for Huntington's depositary shares is $25.00 each.

What dividends will be paid to holders of the depositary shares?

Holders will receive declared and unpaid dividends of $0.36725 per depositary share.

What type of preferred stock is being redeemed by Huntington Bancshares?

Huntington is redeeming its 5.875% Series C Non-Cumulative Perpetual Preferred Stock.