Huntington to issue $1.3 billion of debentures to acquire FirstMerit

By Lisa Kerner

Charlotte, N.C., Jan. 26 – Huntington Bancshares Inc. plans to issue $1.3 billion of debentures as part of its acquisition of FirstMerit Corp.

On Tuesday, the companies announced that FirstMerit will merge into Huntington in a stock-and-cash transaction valued at about $3.4 billion.

FirstMerit shareholders will receive 1.72 shares of Huntington common stock and $5.00 in cash for each share of FirstMerit common stock. The consideration is valued at $20.14 per share based on the closing price of Huntington common stock on Jan. 25, according to a news release.

The ratio of pro forma tangible capital equity to tangible assets is projected to be 7.1% at closing.

The merger is slated to close in the third quarter.

Huntington Bancshares is a financial holding company based in Columbus, Ohio. FirstMerit is a financial services company based in Akron, Ohio.

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