CLEVELAND, Sept. 10, 2021 /PRNewswire/ -- KeyCorp (NYSE:
KEY) announced today that KeyBank has sold its indirect retail auto
loan portfolio and that KeyCorp has entered into an accelerated
share repurchase (ASR) program.
"We are committed to returning capital to our shareholders and
our share repurchase program is an important part of that
commitment," said Don Kimble, Chief
Financial Officer of KeyCorp. "The ASR transaction, which was
aided by the capital generated from the sale of the indirect retail
auto loan portfolio, further demonstrates our commitment to
maximizing shareholder value."
Auto Loan Portfolio
On September 10, 2021, KeyBank
sold its $3.2 billion indirect retail
auto loan portfolio to a vehicle managed by a wholly-owned
subsidiary of Waterfall Asset Management,
LLC. Concurrently with the sale, KeyBank purchased
$2.8 billion of senior notes from a
securitization collateralized by the sold loans. KeyBank will
remain the servicer of the auto loans.
KeyBank was advised on the transaction by Morgan Stanley &
Co. LLC as lead structuring and financial advisor and KeyBanc
Capital Markets, as well as by legal counsel Sidley Austin
LLP. Waterfall Asset Management, LLC was advised on the
transaction by legal counsel Morgan, Lewis & Bockius LLP.
Accelerated Share Repurchase Program
On September 10, 2021, KeyCorp
entered into an accelerated share repurchase agreement with Goldman
Sachs & Co. LLC to repurchase up to $585
million of its outstanding shares of common stock. The
ASR is part of KeyCorp's previously disclosed, board-approved share
repurchase program. Under the ASR agreement, KeyCorp will
initially receive delivery of approximately 23.5 million shares of
common stock on September 14, 2021,
representing approximately 2.5% of the number of shares of common
stock outstanding. Initial delivery is based on the closing
price of the common stock of $19.87,
on September 10, 2021.
The total number of shares that KeyCorp will repurchase under
the ASR program will be based on the volume-weighted average price
of the common stock during the term of the ASR agreement, less a
discount, and subject to potential adjustments pursuant to the
terms and conditions of the ASR agreement. The final
settlement of the share repurchases under the ASR agreement is
expected to be completed in the fourth quarter of 2021.
About KeyCorp
KeyCorp's roots trace back nearly 200
years to Albany, New York.
Headquartered in Cleveland, Ohio,
Key is one of the nation's largest bank-based financial services
companies, with assets of approximately $181.1 billion at
June 30, 2021. Key provides deposit,
lending, cash management, and investment services to individuals
and businesses in 15 states under the name KeyBank National
Association through a network of more than 1,000 branches and
approximately 1,300 ATMs. Key also provides a broad range of
sophisticated corporate and investment banking products, such as
merger and acquisition advice, public and private debt and equity,
syndications, and derivatives to middle market companies in
selected industries throughout the United
States under the KeyBanc Capital Markets trade name. For
more information, visit https://www.key.com. KeyBank is Member
FDIC.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as "outlook," "goal,"
"objective," "plan," "expect," "anticipate," "intend," "project,"
"believe," "estimate" and other words of similar meaning.
Forward-looking statements represent management's current
expectations and forecasts regarding future events. If underlying
assumptions prove to be inaccurate or unknown risks or
uncertainties arise, actual results could vary materially from
these projections or expectations. Factors that could cause Key's
actual results to differ from those described in the
forward-looking statements can be found in KeyCorp's Form 10-K for
the year ended December 31, 2020, as
well as in KeyCorp's subsequent SEC filings, all of which have been
filed with the Securities and Exchange Commission and are available
on Key's website (www.key.com/ir) and on the Securities and
Exchange Commission's website (www.sec.gov). Forward looking
statements speak only as of the date they are made and Key does not
undertake any obligation to update the forward-looking statements
to reflect new information or future events.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/key-sells-indirect-retail-auto-loan-portfolio-enters-into-accelerated-share-repurchase-program-301373639.html
SOURCE KeyCorp