By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, April 20 – Fifth Third Bancorp priced $1 billion of fixed-to-floating rate senior notes (expected: Baa1/BBB+/A-) in two parts on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
Fifth Third priced $400 million of 4.055% six-year notes at par at a spread of Treasuries plus 118 basis points. The coupon will be fixed until April 25, 2027 and then will float at compounded SOFR plus 135.5 bps.
Spread talk had been in the Treasuries plus 140 bps to 145 bps area.
The issuer priced $600 million of 4.337% 11-year notes at par at a spread of Treasuries plus 148 bps. The coupon for this series will be fixed until April 25, 2032 and will then float at compounded SOFR plus 166 bps.
Spread talk was in the Treasuries plus 170 bps to 175 bps area.
Goldman Sachs & Co. LLC, Fifth Third Securities, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are the joint bookrunners.
Proceeds will be used for general corporate purposes.
The bank holding company is based in Cincinnati.
| Issuer: | Fifth Third Bancorp
|
| Amount: | $1 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, Fifth Third Securities, Inc., Morgan Stanley & Co. LLC and RBC Capital Markets, LLC
|
| Co-manager: | Academy Securities, Inc.
|
| Trustee: | Wilmington Trust Co.
|
| Counsel to issuer: | Graydon Head & Ritchey LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Pricing date: | April 20
|
| Settlement date: | April 25
|
| Expected ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $400 million
|
| Maturity: | April 25, 2028
|
| Coupon: | 4.055% until April 25, 2027, then compounded SOFR plus 135.5 bps
|
| Price: | Par
|
| Yield: | 4.055%
|
| Spread: | Treasuries plus 118 bps
|
| Call option: | In whole on April 25, 2027 at par or in whole or in part at par 30 days prior to maturity
|
| Price talk: | Treasuries plus 140 bps to 145 bps area
|
| Cusip: | 316773DE7
|
|
|
| 11-year notes
|
| Amount: | $600 million
|
| Maturity: | April 25, 2033
|
| Coupon: | 4.337% until April 25, 2032, then compounded SOFR plus 166 bps
|
| Price: | Par
|
| Yield: | 4.337%
|
| Spread: | Treasuries plus 148 bps
|
| Call option: | In whole on April 25, 20232 at par or in whole or in part at par 90 days prior to maturity
|
| Price talk: | Treasuries plus 170 bps to 175 bps area
|
| Cusip: | 316773DF4
|
|
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