Huntington Bancshares extends early tender date for trust preferreds

By Jennifer Chiou

New York, June 5 - Huntington Bancshares Inc. announced the extension of the early tender deadline in the offer for the trust preferred securities issued by Huntington Capital I, Huntington Capital II and Huntington Capital III to 11:59 p.m. ET on June 18 from 5 p.m. ET on June 4.

The trust preferreds have a total liquidation amount of $470 million and include the Huntington Capital I floating-rate capital securities, Huntington Capital II floating-rate capital securities, series B and Huntington Capital III's 6.65% trust preferred securities.

"Overall, we have been pleased with the response to this tender offer and wanted to extend the early tender deadline to make certain that those that have expressed an interest have the opportunity to participate," Stephen D. Steinour, chairman, president and chief executive officer, said in a news release.

"This tender offer is part of our overall plan to raise our capital levels. It complements our common equity offering, which was priced June 3 and is anticipated for successful completion next week."

The tender offer will also 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.

As already reported, 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, Steinour said in a prior 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.

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