BB&T to redeem $3.1 billion in trust preferred securities.
WINSTON-SALEM, N.C. BB&T Corporation (NYSE: BBT) announced today that the trusts listed below will redeem in their entirety $3.1 billion in aggregate principal amount of issued and outstanding trust preferred securities. This move follows an announcement made by The Board of Governors of the Federal Reserve that proposes rules to phase-out the Tier 1 capital treatment for trust preferred securities.
The issued and outstanding trust preferred securities will be redeemed on the redemption date specified for the securities in the notices that BB&T disseminated to the holders of the applicable securities.
The securities identified below will be redeemed within 45 days from today in accordance with the terms governing these securities. BB&T is redeeming the securities pursuant to redemption provisions relating to the occurrence of a "Capital Treatment Event" (as defined in the documents governing those securities). In each case, the redemption price will be 100% of the liquidation amount of each trust preferred capital security, together with accrued and unpaid interest to the redemption date. The redemptions will be funded with available cash.
Trust Security Amount CUSIP BB&T Capital Trust I 5.85% Capital Securities $500,000,000 05529MAA0 BB&T Capital Trust II 6.75% Cumulative Capital Securities $600,000,000 05530AAA3 BB&T Capital Trust IV Fixed to Floating Rate Capital Securities $600,000,000 073294AA8 BB&T Capital Trust V Fixed to Floating Rate Enhanced Trust Preferred Securities $450,000,000 05530J205 BB&T Capital Trust VI 9.60% Enhanced Trust Preferred Securities $575,000,000 05531B201 BB&T Capital Trust VII 8.10% Enhanced Trust Preferred Securities $350,000,000 05531H208