Truist Bank announces redemption of senior bank notes due August 2022

Rhea-AI Summary

Truist Bank, headquartered in Charlotte, N.C., has announced the redemption of $500 million of 3.502% fixed-to-floating senior bank notes and $300 million of floating rate senior bank notes, both due August 2, 2022. The redemption will take place on August 2, 2021, at a price equal to 100% of the principal plus accrued interest. Following the redemption date, interest will cease to accrue. This move reflects Truist's ongoing commitment to financial management as a leading U.S. commercial bank with total assets of $522 billion as of June 30, 2021.

Positive

• Truist is redeeming $800 million in total of senior bank notes, which may improve its debt profile.
• The firm continues to maintain a strong asset base of $522 billion.

Negative

• Redemption of senior notes could indicate pressure on liquidity or cash flow management.

CHARLOTTE, N.C., July 16, 2021 /PRNewswire/ -- Truist Bank today announced it will redeem all $500,000,000 principal amount outstanding of its 3.502% fixed-to-floating rate senior bank notes due Aug. 2, 2022 (CUSIP 86787EAX5) and all $300,000,000 principal amount outstanding of its floating rate senior bank notes due Aug. 2, 2022 (CUSIP 86787EAW7) on the redemption date of Aug. 2, 2021.

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

Payment of the redemption price for the 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 $522 billion as of June 30, 2021. Truist Bank, Member FDIC. Learn more at Truist.com.

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SOURCE Truist Financial Corporation

FAQ

What senior bank notes is Truist redeeming on August 2, 2021?

Truist is redeeming $500 million of 3.502% fixed-to-floating rate senior bank notes and $300 million of floating rate senior bank notes.

What is the total amount of notes being redeemed by Truist?

The total amount being redeemed is $800 million.

When will Truist's senior bank notes cease to accrue interest?

Interest will cease to accrue on August 2, 2021, the redemption date.

What impact does the redemption have on Truist's financial position?

The redemption may improve Truist's debt profile but could also indicate liquidity pressure.

How much total assets does Truist have as of June 30, 2021?

Truist has total assets of $522 billion as of June 30, 2021.