Wednesday, Fifth Third Bancorp (FITB), said that it has completed the sale of approximately $3.4 billion in preferred shares to the U.S. Department of Treasury under the Treasury's Capital Purchase Program or CPP.
Commenting on the development, Kevin Kabat, President and Chief Executive Officer of Fifth Third Bancorp stated, "The additional capital increases our capacity to provide credit to businesses and consumers in our markets and to further assist struggling borrowers."
According to plans, the financial services company issued 36,320 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series F, having a liquidation preference of $25,000 per share, and a ten-year warrant to purchase up to 43,617,747 shares of Fifth Third common stock at an exercise price of $11.72.
The company noted that the preferred stock investment represented $3,408 million dollars, or approximately 3% of its risk weighted assets as of September 30, 2008.
FITB is currently trading at $7.95 down 0.25% or $0.02, on a volume of 1.5 million shares on the Nasdaq.
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