U.S. Bancorp Announces Plan to Transition Outstanding U.S. Bancorp-Issued U.S. Dollar LIBOR-linked Securities to Term SOFR As Replacement Reference Rate after June 30, 2023
In
In connection with the cessation of representative USD LIBOR, in
Certain Legacy LIBOR Instruments lack a clearly defined or practicable benchmark replacement rate, while others contain hardwired contractual fallback provisions that specify the transition to a specific successor reference rate and spread adjustment and, in either case, also may contemplate conforming changes that are necessary or appropriate to the implementation, administration, and calculation of the replacement reference rate. Each Legacy LIBOR Instrument referenced herein will transition to 3-month Term SOFR plus the relevant tenor spread adjustment on the first applicable date after
For the following types of Legacy LIBOR Instruments that lack a clearly defined or practicable benchmark replacement rate and currently use 3-month USD LIBOR as the reference rate or will use 3-month USD LIBOR as the reference rate during a floating rate period, in accordance with the LIBOR Act and LIBOR Rule, by operation of law, 3-month Term SOFR will be the reference rate for calculations of the amount of interest or dividends payable with respect to interest or dividend periods with determination dates occurring after
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Floating rate debt securities issued by
U.S. Bank National Association -
Floating rate and fixed-to-floating rate preferred stock (represented by depositary shares) issued by
U.S. Bancorp -
Fixed-to-floating rate income trust securities issued by
USB Capital IX -
Fixed-to-floating rate preferred stock issued by
USB Realty Corp.
Annex A provides a list of USD LIBOR-linked instruments that will transition to 3-month Term SOFR by operation of law following
For Legacy LIBOR Instruments that lack a clearly defined or practicable benchmark replacement rate and provide a determining person with authority to select the benchmark replacement rate, 3-month Term SOFR will be the applicable reference rate for calculations of the amount of interest or dividends payable with respect to interest or dividend periods with determination dates occurring after
For Legacy LIBOR Instruments for which hardwired contractual fallback provisions specify the transition to a successor reference rate and spread adjustment following the cessation of the publication of 3-month USD LIBOR on a representative basis, 3-month Term SOFR will be the applicable reference rate for calculations of the amount of interest or dividends payable with respect to interest or dividend periods with determination dates occurring after
In each case, and as explained above, the 3-month Term SOFR replacement rate, and therefore the calculation of the amount of interest or dividends payable on securities or instruments for interest or dividend periods with determination dates that occur after
For the avoidance of doubt, each Legacy LIBOR Instrument will transition to a replacement rate as described herein, and this announcement does not automatically transition such securities and instruments to the replacement rate as of the date hereof. Also, circumstances could change that could impact the timing and other information described herein.
This press release applies only to the USD LIBOR securities listed in the Annexes to this press release and does not relate to any other securities or other instruments. In advance of the
Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made in this press release include, without limitation, statements concerning the expected transition of the Annex C
About
Annex A |
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Legacy USD LIBOR instruments transitioning by operation of law under the LIBOR Act and LIBOR Rule |
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CUSIP |
Title of Instrument |
90331HLC5 |
Senior Notes due 2046 |
90331HLD3 |
Senior Notes due 2046 |
90331HLE1 |
Senior Notes due 2047 |
90331HLH4 |
Senior Notes due 2047 |
90331HLY7 |
Senior Notes due 2048 |
90331HMA8 |
Senior Notes due 2048 |
90331HMG5 |
Senior Notes due 2054 |
90331HMT7 |
Senior Notes due 2055 |
90331HMW0 |
Senior Notes due 2056 |
90331HNA7 |
Senior Notes due 2056 |
90331HND1 |
Senior Notes due 2057 |
90331HNN9 |
Senior Notes due 2058 |
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CUSIP (Depositary Shares) |
Title of Instrument |
902973866 |
Depositary Shares, each representing 1/100th interest in a share of Series A Non-Cumulative Perpetual Preferred Stock |
902973155 |
Depositary Shares, each representing 1/1,000th interest in a share of Series B Non-Cumulative Perpetual Preferred Stock |
902973AZ9 |
Depositary Shares, each representing 1/25th interest in a share of Series J Non-Cumulative Perpetual Preferred Stock |
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CUSIP |
Title of Instrument |
91731KAA8 |
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CUSIP |
Title of Instrument |
903312AA4 |
Fixed-to-Floating-Rate Exchangeable Non-Cumulative Perpetual Series A Preferred Stock exchangeable for shares of |
(1) Under certain circumstances, upon the direction of the |
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Annex B |
Legacy |
CUSIP |
Title of Instrument |
90331HNZ2 |
Senior Notes due 2058 |
Annex C |
Legacy |
CUSIP |
Title of Instrument |
90331HPH0 |
Senior Notes due 2059 |
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