PROVIDENCE – Rhode Island’s largest bank is making a habit of having stock offerings following the release of its quarterly financial reports.
Providence-based Citizens Financial Group Inc., the holding company for Citizens Bank, last week announced a $450 million stock offering, three days after announcing its third-quarter results.
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The company is offering 18 million depositary shares, representing a 1/40th interest in a share of its 5% fixed-rate noncumulative perpetual Series E preferred stock. The liquidation preference is $1,000 per share, equivalent to $25 per depositary share, at an aggregate offering price of $450 million, the company said.
The offering was announced Oct. 21 and scheduled to close Oct. 28.
Citizens said it plans to use the proceeds of the offering for general corporate purposes.
Morgan Stanley & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Wells Fargo Securities LLC, Citizens Capital Markets Inc., Barclays Capital Inc. and Credit Suisse Securities (USA) LLC are acting as underwriters for the offering.
The offering follows the Oct. 18 release of the company’s third-quarter financial results, reporting a profit of $449 million, or 97 cents per diluted share, compared with a profit of $443 million, or 91 cents per diluted share, in the third quarter last year.
In July, Citizens announced a $500 million stock offering following the release of its second-quarter results.
In June, Citizens announced its board of directors had approved stock repurchases up to $1.275 billion over the year beginning July 1 – a 25% increase over last year’s stock repurchases.
In February, Citizens announced the sale of $1.5 billion in senior unsecured notes, also to raise funds for general corporate purposes.
In January, shortly after announcing its fourth-quarter 2018 results, Citizens held a $300 million stock offering. That followed another $300 million stock offering in October 2018 after announcing its third-quarter 2018 results.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
