U.S. Bancorp Announces Debt/Equity Conversion With Mitsubishi UFJ Financial, Issues 24M Shares For $936M
Portfolio Pulse from Benzinga Newsdesk
U.S. Bancorp (USB) plans to issue 24 million shares of its common stock to an affiliate of Mitsubishi UFJ Financial Group (MUFG) for $936 million. The proceeds will be used to satisfy a portion of its repayment obligation to MUFG. The debt/equity conversion is expected to close on August 3, 2023, and will increase U.S. Bancorp's CET1 ratio by approximately 20 basis points.
August 04, 2023 | 12:35 pm
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U.S. Bancorp's issuance of 24 million shares to MUFG will help satisfy its repayment obligation and boost its CET1 ratio.
The issuance of shares will help U.S. Bancorp satisfy its repayment obligation to MUFG, which is a positive development for the company. Additionally, the transaction will boost its CET1 ratio, indicating a stronger capital position. This could potentially lead to a positive reaction in the stock market.
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