Huntington tallies early tenders for 2021, 2022 notes, ups tender cap

By Taylor Fox

New York, Nov. 3 – Huntington Bancshares Inc. announced the early results of its cash tender offers to purchase up to $200 million of its $1 billion outstanding 3.15% senior notes due 2021 (Cusip: 446150AJ3) and now up to $300 million of its $1 billion outstanding 2.3% senior notes due 2022 (Cusip: 446150AK0), according to a news release.

The tender cap on the 2022 notes was increased from $200 million.

As of the 5 p.m. ET Nov. 2 early tender deadline, holders had tendered $531.4 million of the 2021 notes and $553,428,000 of the 2022 notes.

Huntington has accepted for purchase $200 million of the 2021 notes using a proration factor of 37.7% and $299,995,000 of the 2022 notes at a proration factor of 54.3%.

Notes not accepted for purchase will be credited to the account of the registered holder of those notes with the Depository Trust Co. and otherwise returned.

Because the notes tendered exceeded the tender cap for each series of notes, Huntington does not expect to accept for purchase any tenders of notes after the early tender deadline.

Holders of the notes tendered by the early tender deadline and accepted for purchase will receive the total tender offer consideration, including the early tender premium of $30 per $1,000 of notes.

The tender offer consideration will be determined based on the 0.125% U.S. Treasury due Sept. 30, 2022 and a fixed spread. The fixed spread is 5 basis points for the 2021 notes and 10 bps for the 2022 notes.

The consideration will be calculated at 10:30 a.m. ET on Nov. 3.

In addition to the tender offer consideration, holders will receive accrued interest.

Huntington plans to use a combination of cash, cash equivalents and other available cash resources to fund the note purchase.

The early settlement date is expected for Nov. 4.

The offer will expire at 11:59 p.m. ET on Nov. 16, and the final settlement date is expected to be Nov. 18.

Credit Suisse Securities (USA) LLC (800 820-1653) is the dealer manager for the offer.

Global Bondholder Services Corp. (866 470-3800, contact@gbsc-usa.com) is the tender agent and information agent.

Huntington is a Columbus, Ohio-based bank holding company.

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