COLUMBUS, Ohio - Huntington Bancshares Incorporated (NASDAQ:HBAN) announced today the issuance and sale of $1.75 billion in debt securities, comprised of $1.15 billion of 5.272% Fixed-to-Floating Rate Senior Notes due in 2031 and $600 million of 6.141% Fixed-to-Fixed Rate Subordinated Notes due in 2039. The sale took place on Monday, with the securities being offered under an underwriting agreement dated November 12, 2024.
The Senior Notes are governed by a Senior Debt Securities Indenture, as amended by the Fifth Supplemental Indenture of August 21, 2023, and further by the Eighth Supplemental Indenture of November 18, 2024. Similarly, the Subordinated Notes are issued pursuant to a Subordinated Debt Securities Indenture, as supplemented by the Third Supplemental Indenture also dated November 18, 2024. Both indentures are between Huntington and The Bank of New York Mellon (NYSE:BK) Trust Company, N.A., which acts as the trustee.
The underwriting syndicate includes Citigroup (NYSE:C) Global Markets Inc., Goldman Sachs (NYSE:GS) & Co. LLC, Huntington Securities, Inc., RBC Capital Markets, LLC, and UBS Securities LLC. The transaction is detailed in a prospectus supplement filed with the U.S. Securities and Exchange Commission on November 14, 2024, as part of Huntington's Registration Statement.
This financial move by Huntington Bancshares, a company with a standard industrial classification as a national commercial bank, is aimed at raising capital through debt securities. The notes were sold in accordance with the terms set forth in the respective indentures and the underwriting agreement.
Huntington Bancshares, with its headquarters located at Huntington Center, 41 South High Street in Columbus (WA:CLC), Ohio, is known for providing a full range of banking services to individuals and businesses, including commercial, consumer, mortgage banking, and other financial products and services.
InvestingPro Insights
Huntington Bancshares' recent issuance of $1.75 billion in debt securities comes at a time when the company's financial metrics present a mixed picture. According to InvestingPro data, Huntington's revenue for the last twelve months as of Q3 2024 stood at $6.69 billion, with a year-over-year revenue decline of 7.35%. Despite this, the company has maintained a strong dividend yield of 5.8% as of the latest data.
InvestingPro Tips highlight that Huntington has maintained dividend payments for an impressive 54 consecutive years, demonstrating a commitment to shareholder returns even in challenging times. This consistency aligns with the company's recent capital-raising efforts through debt securities, potentially aimed at maintaining financial stability and supporting ongoing operations.
The company's stock has shown resilience, with a 17.98% total return over the past year. This positive performance comes despite the fact that 7 analysts have revised their earnings downwards for the upcoming period, as noted in another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Huntington Bancshares, providing deeper insights into the company's financial health and market position.
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