Huntington to exchange some shares for 8.5% convertible preferreds

By Susanna Moon

Chicago, June 12 - Huntington Bancshares Inc. said it agreed to issue 2,674,378 common shares for 16,400 shares of the company's 8.5% series A non-cumulative perpetual convertible preferred stock.

The exchange will settle by June 17. The company entered into agreements with the shareholders on May 26 and June 10.

On June 11, the company entered into an agreement with related shareholders to exchange shares for up to 55,984 of the preferreds. The number of shares exchanged will be determined according to a formula that considers the conversion rate of the preferreds and the per share volume-weighted average of the common stock over the next six business days.

The exchange will settle by June 22.

Huntington said the exchanges are part of the "additional capital actions to increase regulatory common equity" announced on May 20.

The company said on June 3 that it issued $20 million of common stock, or 4.7 million shares, in exchange for a portion of preferred stock late in the first quarter.

The exchanges settled April 2 and are part of the company's plan to add about $675 million of regulatory common equity.

The company said at the time that it was pursuing $300 million public offering of common stock, a tender offer for $470 million of trust preferred securities and the issuance of $196 million of stock through discretionary equity issuance programs.

The company expected another $250 million of combined impact from other potential actions, including management initiatives, the exchange of other capital instruments and the adoption of new accounting standards.

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

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