Truist Bank announces redemption of fixed rate senior notes due January 2022

Rhea-AI Summary

Truist Bank, based in Charlotte, N.C., announced the redemption of $1 billion in fixed rate senior notes, set to mature on January 15, 2022. The redemptions will occur on December 15, 2021, with investors receiving 100% of the principal plus accrued interest up to the redemption date. The interest on these notes will cease post-redemption. Truist Financial, holding assets of $530 billion as of September 30, 2021, is a major player in the financial services sector, offering a broad range of banking and financial solutions.

Positive

• Redeeming $1 billion in senior notes may improve liquidity.
• Interest payments will terminate, potentially enhancing cash flow.

Negative

• Redeeming senior notes could indicate a need to manage debt levels closely.

CHARLOTTE, N.C., Dec. 3, 2021 /PRNewswire/ -- Truist Bank today announced it will redeem all $1,000,000,000 principal amount outstanding of its fixed rate senior notes due Jan. 15, 2022 (CUSIP 07330NAQ8) on the redemption date of Dec. 15, 2021.

The redemption price for the senior notes will be equal to 100% of the 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 (NYSE: TFC) 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 significance of Truist Bank redeeming its fixed rate senior notes due January 2022?

The redemption of $1 billion in senior notes indicates Truist Bank's strategy to manage its debt and cash flow effectively.

When will Truist Bank redeem its fixed rate senior notes?

Truist Bank will redeem its fixed rate senior notes on December 15, 2021.

What can investors expect from the redemption of senior notes by Truist Bank?

Investors can expect to receive 100% of the principal amount plus any accrued interest up until the redemption date.

How does the redemption of senior notes affect Truist Financial Corporation's financial position?

The redemption may enhance Truist's liquidity and cash flow management by ceasing interest payments on those notes.