Huntington Bancshares to begin tender offer for $470 million of trust preferreds Thursday

By Angela McDaniels

Tacoma, Wash., May 20 - Huntington Bancshares Inc. will begin a tender offer May 21 for the trust preferred securities issued by Huntington Capital I, Huntington Capital II and Huntington Capital III, according to a company news release.

The trust preferreds have a total liquidation amount of $470 million.

The tender offer will expire at 11:59 p.m. ET on June 18.

Based on an average tender offer price of $525 per $1,000 liquidation amount and assumed participation by 50% of the holders by liquidation amount, the company expects the offer to generate an estimated after-tax gain of $75 million.

The offer is one of several actions being taken by the company to add about $675 million of regulatory common equity.

Other plans include a $350 million discretionary equity issuance program and $250 million of combined impact from potential actions that include liability management initiatives, exchange of other capital instruments, adoption of new accounting standards and other management initiatives.

These actions will better position the company to repay its $1.4 billion of Troubled Asset Relief Program capital, chairman, president and chief executive officer Stephen D. Steinour said in the release.

Goldman, Sachs & Co. (800 828-3182 or 212 357-4692) is the dealer manager for the tender offer, and Global Bondholder Services Corp. (866 387-1500 or 212 430-3774) is the information agent.

Columbus, Ohio-based Huntington Bancshares is the bank holding company for Huntington National Bank.

© 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.