Citizens to repurchase $125M of subordinated notes

PROVIDENCE – Citizens Financial Group Inc. last week announced a $125 million repurchase of its subordinated notes, according to a federal filing.
The Providence-based financial institution will repurchase $125 million of its 4.023 percent subordinated notes due 2024, which the company says is a part of its multiyear efficiency strategy.
“This transaction is a part of a multiyear strategy designed to enhance the efficiency of our balance sheet and capital structure,” said Eric Aboaf, chief financial officer. “We believe this repurchase provides Citizens attractive financial benefits, moves our Tier 2 capital levels closer to peers and leaves us plenty of flexibility for our 2016 CCAR submission,” commonly referred to as the Federal Reserve’s stress test.
The transaction is in addition to the company’ Nov. 23 announcement to repurchase $500 million in subordinated notes.
Citizens, with $138.2 billion in assets, is the largest Rhode Island-based bank.

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