By Wendy Van Sickle
Columbus, Ohio, July 24 – Fifth Third Bancorp priced $1.25 billion of fixed-to-floating rate senior notes due July 27, 2029 (Baa1/BBB+/A-) on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes priced at par with a 220 basis points spread to Treasuries.
The starting 6.339% interest rate will carry through July 2028. Starting on July 27, 2028, quarterly interest will be at SOFR plus 234 bps.
There will a make-whole redemption option at Treasuries plus 30 bps until the reset date, when the notes can be redeemed at par. Then, there is a par call the last month before the notes mature.
RBC Capital Markets, LLC, Citigroup Global Markets Inc., Fifth Third Securities, Inc. and Morgan Stanley & Co. LLC are the bookrunners.
Proceeds will be used for general corporate purposes.
Fifth Third is a Cincinnati-based diversified financial services company.
| Issuer: | Fifth Third Bancorp
|
| Amount: | $1.25 billion
|
| Issue: | Fixed-to-floating rate senior notes
|
| Maturity: | July 27, 2029
|
| Bookrunners: | RBC Capital Markets, LLC, Citigroup Global Markets Inc., Fifth Third Securities, Inc. and Morgan Stanley & Co. LLC
|
| Co-managers: | Drexel Hamilton, LLC and SMBC Nikko Securities America, Inc.
|
| Trustee: | Wilmington Trust Co.
|
| Counsel to issuer: | Bricker Graydon LLP
|
| Counsel to underwriters: | Davis Polk & Wardwell LLP
|
| Coupon: | 6.339% starting rate, resets to SOFR plus 234 bps on July 27, 2028
|
| Price: | Par
|
| Yield: | 6.339%
|
| Spread: | Treasuries plus 220 bps
|
| Call features: | Make-whole call at Treasuries plus 35 bps until July 27, 2028; callable on July 27, 2028 at par; callable last month at par
|
| Trade date: | July 24
|
| Settlement date: | July 27
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Cusip: | 316773DK3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
