Fifth Third calls $450 million of trust preferred securities

By Toni Weeks

San Diego, May 18 - Fifth Third Bancorp. has called for redemption $450 million of trust preferred securities, according to a press release. Upon issuance of the redemption notice, the securities no longer qualify as tier 1 capital for the company.

The redemptions will be funded with excess cash and are scheduled as follows:

• $400 million of 8.875% trust preferred securities issued by Fifth Third Capital Trust VII will be redeemed on June 15;

• $40 million of floating-rate capital securities issued by First National Bankshares Statutory Trust I will be redeemed on June 30; and

• $10 million of floating-rate capital securities issued by R&G Capital Trust II, LLT will be redeemed on June 26.

The redemption price of $25 plus accrued distributions of $0.1848958 will be paid for each of the 8.875% securities issued by Fifth Third Capital Trust VII. The paying agent for these securities is Wilmington Trust.

Fifth Third is a financial services company with headquarters in Cincinnati.

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