Truist announces redemption of 2.70% senior notes due January 2022

Rhea-AI Summary

Truist Financial Corporation (NYSE: TFC) announced the redemption of all $1 billion principal amount of its 2.70% senior notes due on January 27, 2022 on the redemption date of December 27, 2021. The redemption price will be 100% of the principal amount plus accrued interest until the redemption date. Payments for the redemption will be managed through The Depository Trust Company. As a top 10 U.S. commercial bank, Truist has total assets of $530 billion as of September 30, 2021.

Positive

• Redeeming $1 billion of senior notes reduces future interest obligations.
• Strengthens balance sheet by eliminating debt before maturity.

Negative

• None.

CHARLOTTE, N.C., Dec. 10, 2021 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) today announced it will redeem all $1,000,000,000 principal amount outstanding of its 2.70% senior notes due Jan. 27, 2022 (CUSIP 867914BM4) on the redemption date of Dec. 27, 2021.

The redemption price for the senior notes will be equal to 100% of their principal amount plus accrued and unpaid interest to, but excluding, the redemption date. Interest on the senior notes will cease to accrue on and after the redemption date.

Payment of the redemption price for the senior notes will be made through the facilities of The Depository Trust Company.

About Truist

Truist Financial Corporation is a purpose-driven financial services company committed to inspiring and building better lives and communities. Formed by the historic merger of equals of BB&T and SunTrust, Truist has leading market share in many high-growth markets in the country. The company offers a wide range of services including retail, small business and commercial banking; asset management; capital markets; commercial real estate; corporate and institutional banking; insurance; mortgage; payments; specialized lending; and wealth management. Headquartered in Charlotte, North Carolina, Truist is a top 10 U.S. commercial bank with total assets of $530 billion as of September 30, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.

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SOURCE Truist Financial Corporation

FAQ

What is the total amount of senior notes Truist is redeeming?

Truist is redeeming $1 billion of its senior notes.

When is the redemption date for Truist's senior notes?

The redemption date is December 27, 2021.

What is the coupon rate for the senior notes due January 2022?

The coupon rate for the senior notes is 2.70%.

How does redeeming senior notes impact Truist's financials?

Redeeming senior notes reduces future interest obligations and strengthens the balance sheet.

What will happen to interest accrual after the redemption date?

Interest on the senior notes will cease to accrue on and after the redemption date.