Huntington Bancshares Incorporated (HBAN, Financial) has announced the successful issuance and sale of $1.15 billion in aggregate principal amount of its 5.272% Fixed-to-Floating Rate Senior Notes due 2031, alongside $600 million in aggregate principal amount of its 6.141% Fixed-to-Fixed Rate Subordinated Notes due 2039. This strategic financial maneuver aims to bolster the company's capital structure and support its long-term growth objectives.
The Senior Notes were issued under a Senior Debt Securities Indenture, initially dated December 29, 2005, and have been amended and supplemented by recent agreements, including the Fifth and Eighth Supplemental Indentures. Similarly, the Subordinated Notes were issued under a Subordinated Debt Securities Indenture, also dated December 29, 2005, and supplemented by a Third Supplemental Indenture.
The issuance was facilitated through an underwriting agreement dated November 12, 2024, involving several prominent financial institutions, including Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Huntington Securities, Inc., RBC Capital Markets, LLC, and UBS Securities LLC.
This move is part of Huntington Bancshares' ongoing efforts to optimize its financial operations and enhance shareholder value. The details of these financial instruments are further elaborated in a prospectus supplement filed with the U.S. Securities and Exchange Commission on November 14, 2024.
For value investors and stakeholders, this development signifies Huntington Bancshares' commitment to maintaining a robust financial foundation while navigating the evolving economic landscape.
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