Fifth Third Bancorp (FITB), Wednesday announced plans related to two capital transactions that would help meet its commitment to increase Tier 1 common equity.
The company expects the two transactions to provide common equity capital beyond the $1.1 billion common equity buffer required by the results of Fifth Third's Supervisory Capital Assessment Program assessment under the "more adverse scenario."
Cincinnati, Ohio based Fifth Third Bancorp also said its plans to sell up to an aggregate of $750 million of its common shares from time to time with an "at the market" offering through Morgan Stanley and Merrill Lynch & Co, the companies acting as sales agents and/or principals in connection with the equity offering.
Fifth Third Bancorp expects to utilize a portion of the proceeds of shares issued under this offering to fund the cash portion of its offer to exchange cash and common shares for Series G convertible preferred depositary shares.
The company said it also intends to use the proceeds of the offering not utilized in the exchange offer, for general corporate purposes, which includes future use of the proceeds - in addition to other capital or funds, including the issuance of qualifying debt - to repay all or a portion of the preferred stock and warrants issued to the U.S. Department of Treasury related to the Capital Purchase Program. This is subject to consultation with and approval from regulatory authorities.
Fifth Third Bancorp would concurrently offer holders of its $1.1 billion Series G convertible preferred depositary shares, in exchange for tendering their shares in integral multiples of 250 shares to Fifth Third. The company would also make cash payment in a fixed amount of $30 per Series G depositary share in addition to a conversion of the common shares underlying the Series G preferred shares.
The company said, according to the closing common per share price on May 18, 2009 of $7.99, exchange offer would value each Series G depositary share at $99.03, consisting of $69.03 in parity value of the underlying common shares and remainder in the form of the $30 in cash offered above that parity value.
The company expects to use 45% of the proceeds from the common share offering for the cash portion of the Series G convertible preferred exchange, if fully exchanged.
The companies also expects an enhancement in its capital ratios through the successful completion of the transactions, together with the expected capital benefit from the completion the pending processing joint venture with Advent International.
FITB closed Wednesday's trading at $7.71, down $0.10 or 1.28%, on a volume of 40.070 million shares on the Nasdaq. In after hours, the stock further lost $0.13 or $1.69%, trading at $7.58.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.