Truist announces redemption of senior notes due June 2025

Rhea-AI Summary

Truist Financial (NYSE: TFC) announced the redemption of its $1 billion floating rate senior notes due June 9, 2025. The redemption will take place on June 9, 2024, at a price equal to 100% of the principal amount plus accrued and unpaid interest up to the redemption date. The interest on these senior notes will cease accruing after the redemption date. Payment will be made through The Depository Trust Company. Truist Financial, a major U.S. commercial bank, has total assets of $535 billion as of March 31, 2024.

Positive

• Redemption of $1 billion senior notes indicates strong liquidity position.
• Redemption at 100% of principal amount assures investors of full returns.
• Interest accrual ceasing on redemption date reduces future expenses.
• Truist's total assets of $535 billion demonstrate financial stability.

Negative

• Redemption may reduce liquidity in the short term.
• Future interest savings might be offset by the immediate cash outflow.

CHARLOTTE, N.C., May 28, 2024 /PRNewswire/ -- Truist Financial Corporation (NYSE: TFC) today announced it will redeem all $1,000,000,000 principal amount outstanding of its floating rate senior notes due June 9, 2025 (CUSIP 89788MAF9) on the redemption date of June 9, 2024.

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 is a purpose-driven financial services company committed to inspiring and building better lives and communities. As a leading U.S. commercial bank, Truist has leading market share in many of the high-growth markets across the country. Truist offers a wide range of products and services through our wholesale and consumer businesses, including consumer and small business banking, commercial banking, corporate and investment banking, wealth management, payments, and specialized lending businesses. Headquartered in Charlotte, North Carolina, Truist is a top-10 commercial bank with total assets of $535 billion as of March 31, 2024. Truist Bank, Member FDIC. Learn more at Truist.com.

 

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SOURCE Truist Financial Corporation

FAQ

What are the dates related to Truist's senior notes redemption?

The senior notes redemption will occur on June 9, 2024, ahead of their due date on June 9, 2025.

How much principal amount of Truist's senior notes is being redeemed?

Truist is redeeming $1 billion principal amount of its senior notes.

What will be the redemption price for Truist's senior notes?

The redemption price will be 100% of the principal amount plus accrued and unpaid interest up to the redemption date.

Will interest continue to accrue on Truist's senior notes after June 9, 2024?

No, interest on the senior notes will cease to accrue on and after June 9, 2024.