Fifth Third Bancorp Announces Transition of U.S. Dollar LIBOR-Linked Securities to Term SOFR Replacement Rate
June 12 2023 - 4:25PM
Business Wire
Fifth Third Bancorp (Nasdaq: FITB) announced today that, after
June 30, 2023, 3-month CME Term SOFR, as administered by CME Group
Benchmark Administration, Ltd. (or any successor administrator)
plus a tenor spread adjustment of 0.26161% (“SOFR Rate”), will be
the replacement reference rate for certain outstanding floating
rate or fixed-to-floating rate preferred stock represented by
depositary shares, capital trust securities, and preferred stock
issued by Fifth Third Bancorp, First Charter Capital Trust I and
First Charter Capital Trust II that use 3-month U.S. dollar LIBOR
(“USD LIBOR”) as the reference rate and are governed by U.S. law
(the “LIBOR Securities”):
CUSIP
Security
Date SOFR Rate dividends/interest begins
to accrue*
First payment date of SOFR Rate
dividends/interest
316773CM0
Depositary Shares Representing a 1/25th
Ownership Interest in a Share of 5.10% Fixed-to-Floating Rate
Non-Cumulative Perpetual Preferred Stock, Series H
September 30, 2023
December 31, 2023
316773605
Depositary Shares Representing a 1/1000th
Ownership Interest in a Share of 6.625% Fixed-to-Floating Rate
Non-Cumulative Perpetual Preferred Stock, Series I
December 31, 2023
March 31, 2024
316773CR9
Depositary Shares Representing a 1/25th
Ownership Interest in a Share of Fixed-to-Floating Rate
Non-Cumulative Perpetual Preferred Stock, Series J
September 30, 2023
December 31, 2023
319439AA3
Floating Rate Capital Securities of First
Charter Capital Trust I
September 15, 2023
December 15, 2023
319437AA7
Floating Rate Capital Securities of First
Charter Capital Trust II
September 15, 2023
December 15, 2023
* Using the SOFR Rate in effect two
business days prior
On March 5, 2021, the United Kingdom’s Financial Conduct
Authority and ICE Benchmark Administration, Limited announced that
the publication of the one-week and two-month U.S. Dollar (“USD”)
LIBOR settings and non-USD LIBOR settings would cease immediately
after December 31, 2021, with the publication of the remaining USD
LIBOR settings ceasing immediately after June 30, 2023.
In accordance with the Adjustable Interest Rate (LIBOR) Act (the
“LIBOR Act”) and the final regulations issued by the Board of
Governors of the Federal Reserve System on December 16, 2022
implementing the LIBOR Act (the “LIBOR Rule”), the 3-month Term
SOFR Rate, and therefore the calculation of the amount of interest
or dividends payable on the LIBOR Securities, also will include the
tenor spread adjustment of 0.26161% provided in the LIBOR Act and
LIBOR Rule.
Each of the LIBOR Securities will transition to a replacement
rate when and as prescribed by the terms of such instruments, the
LIBOR Act and the LIBOR Rule, and this announcement does not
automatically transition such securities and instruments to the
replacement rate.
This press release applies only to the LIBOR Securities listed
above and does not relate to any other securities or other
instruments.
About Fifth Third
Bancorp
Fifth Third is a bank that’s as long on innovation as it is on
history. Since 1858, we’ve been helping individuals, families,
businesses and communities grow through smart financial services
that improve lives. Our list of firsts is extensive, and it’s one
that continues to expand as we explore the intersection of
tech-driven innovation, dedicated people, and focused community
impact. Fifth Third is one of the few U.S.-based banks to have been
named among Ethisphere's World’s Most Ethical Companies® for
several years. With a commitment to taking care of our customers,
employees, communities and shareholders, our goal is not only to be
the nation’s highest performing regional bank, but to be the bank
people most value and trust.
Fifth Third Bank, National Association is a federally chartered
institution. Fifth Third Bancorp is the indirect parent company of
Fifth Third Bank and its common stock is traded on the NASDAQ®
Global Select Market under the symbol “FITB.” Investor information
and press releases can be viewed at www.53.com.
Forward-Looking
Statements
Certain statements contained in this press release may
constitute “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Rule 175
promulgated thereunder, and Section 21E of the Securities Exchange
Act of 1934, as amended, and Rule 3b-6 promulgated thereunder.
Forward-looking statements made in this press release include,
without limitation, statements concerning the expected transition
of LIBOR Securities to 3-month Term SOFR for the applicable tenor,
plus the relevant spread adjustment. These statements are not
guarantees of future results or performance and involve certain
risks, uncertainties and assumptions that are difficult to predict
or beyond our control. You should not place undue reliance on these
statements, as they are subject to risks and uncertainties,
including but not limited to the risk factors set forth in our most
recent Annual Report on Form 10-K as updated by our filings with
the U.S. Securities and Exchange Commission (“SEC”). Moreover, you
should treat these statements as speaking only as of the date they
are made and based only on information then actually known to us.
We expressly disclaim any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in our expectations or any
changes in events, conditions or circumstances on which any such
statement is based, except as may be required by law, and we claim
the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995.
The information contained herein is intended to be reviewed in its
totality, and any stipulations, conditions or provisos that apply
to a given piece of information in one part of this press release
should be read as applying mutatis mutandis to every other instance
of such information appearing herein.
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version on businesswire.com: https://www.businesswire.com/news/home/20230612496221/en/
Chris Doll (Investor Relations) Christopher.Doll@53.com |
513-534-2345 Adam Kiefaber (Communications) Adam.Kiefaber@53.com |
513-534-NEWS
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