Huntington tallies early tenders, ups tender cap, sets pricing

By Taylor Fox

New York, Nov. 3– Huntington Bancshares Inc. announced the early results and pricing 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).

The tender cap on the 2022 notes was increased from $200 million, according to a Tuesday news release.

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%.

The total tender offer consideration is $1,008.11 per $1,000 of 2021 notes and $1,022.42 per $1,000 of 2022 notes, according to a company announcement later in the day on Tuesday.

The consideration was determined at 10:30 a.m. ET Nov. 3 based on the 0.125% U.S. Treasury due Sept. 30, 2022 and a fixed spread of 5 basis points for the 2021 notes and 10 bps for the 2022 notes.

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

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

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.

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.

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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