Fifth Third Bancorp
) has concluded the repurchase of $100 million shares and is on
the verge of completing the sale of $1.3 billion worth of bank
On Dec 14, 2012, Fifth Third Bancorp entered into an accelerated
share repurchase agreement with Credit Suisse International - a
Credit Suisse Group
). The agreement was a part of its previously announced capital
plan that got the Federal Reserve's nod in August last year and
encompassed the repurchase of $100 million worth of shares.
On Feb 25, 2013, Fifth Third was notified by Credit Suisse that
on Feb 22, 2013, it has completed purchasing shares under the
aforementioned agreement. A total of 6,267,410 shares were
repurchased upon implementation of the deal and an additional
127,760 shares were bought back upon completion.
Overall, 6,395,170 shares were repurchased, at an average
price of $15.6368, under the deal. Since Oct 2012, the company
has bought back $575 million worth of shares.
BANKUNITED INC (BKU): Free Stock Analysis
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FIFTH THIRD BK (FITB): Free Stock Analysis
STATE ST CORP (STT): Free Stock Analysis
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In the same SEC filing, the company declared that it was raising
$1.3 billion in debt by selling notes. The selling of these notes
began on Jan 25 and is anticipated to close in March. The sale
includes $600 million notes due Feb 28, 2018 carrying an interest
rate of 1.45%, $400 million of 0.90% senior fixed rate notes
maturing on Feb 26, 2016, and $300 million of senior floating
rate notes with an interest of 3-month LIBOR plus 0.41% and due
date of Feb 26, 2016.
These bank notes will be redeemable by Fifth Third Bank, in whole
or in part, on or after the date - 30 days prior to the maturity
date. The redemption price will be 100% of the principal amount
plus accrued and unpaid interest through the redemption date.
Upon the issuance of these notes, Fifth Third's borrowing under
its global bank note program will amount to $2.3 billion. Fifth
Third also increased its borrowing capacity in the program from
$20 billion to $25 billion under the amended global bank note
The Fed's objection to a number of elements in Fifth Third's
capital plan, including increases in its quarterly common
dividend and the initiation of common share repurchases, had put
the company on the back foot and deteriorated its competitive
position to some extent. Therefore, a positive development on
that front is encouraging and this is expected to inspire
investors' confidence in the stock.
Fifth Third currently retains its Zacks Rank #2 (Buy). Other
major regional banks that are performing well include
State Street Corporation
), carrying Rank #1 (Strong Buy) and #2, respectively.