Comerica subsidiary calls all $500 million 6.576% capital securities

By Marisa Wong

Madison, Wis., Sept. 1 - Comerica Inc. subsidiary Comerica Capital Trust II will redeem all $500 million of its 6.576% capital securities in full on Oct. 1, according to a press release.

The securities will be redeemed at par plus accrued distributions up to the redemption date.

"The recently signed Dodd-Frank Act changes the treatment of this type of security, so it is no longer an effective form of equity capital for us," chairman and chief executive officer Ralph W. Babb Jr. said in the release.

"Our strong capital and liquidity positions have enabled us to secure requisite regulatory approvals. Elimination of these higher-cost securities will result in significant interest savings for us."

The Bank of New York Mellon is the trustee.

Comerica is a financial services company based in Dallas.

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