Item 2.03 Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant
On January 22, 2021, Fifth Third Bancorp ("Fifth Third") entered into a new
share repurchase agreement with Morgan Stanley & Co. LLC ("MSCO") pursuant to
which Fifth Third will purchase approximately $180 million of its outstanding
common stock.
Fifth Third is repurchasing the shares of its common stock as part of its 100
million share repurchase program previously announced in a press release on June
18, 2019 and a current report on Form 8-K filed on June 20, 2019.
Under the Master Confirmation dated as of July 29, 2015, supplemented by a
Supplemental Confirmation dated January 22, 2021 with a notional amount of $180
million, (together, the "Repurchase Agreement") between Fifth Third and MSCO,
Fifth Third will pay an aggregate of $180 million to MSCO on January 26, 2021,
and expects to receive a substantial majority of the shares underlying the
Repurchase Agreement by January 26, 2021. The actual number of shares of Fifth
Third common stock to be delivered by MSCO will be based generally on a discount
to the average of the daily volume-weighted average NASDAQ prices of Fifth
Third's common stock during the term of the Repurchase Agreement. At settlement,
MSCO may be obligated to deliver additional shares of Fifth Third's common stock
to Fifth Third, or Fifth Third may be obligated to make a delivery of common
stock or a payment of cash to MSCO at Fifth Third's election. Fifth Third
expects the settlement of the transaction to occur on or before March 31, 2021.
The Repurchase Agreement is subject to certain customary adjustments and
termination provisions. In addition, upon the occurrence of certain
extraordinary events, MSCO is entitled to terminate the Repurchase Agreement, in
which case Fifth Third may receive fewer shares of its common stock than
expected.
The foregoing description of the Repurchase Agreement is a summary and is
qualified in its entirety by the terms of the Repurchase Agreement, a copy of
which will be filed as an exhibit to Fifth Third's Form 10-Q for the fiscal
quarter ending March 31, 2021.
MSCO and certain of its affiliates have performed, and in the future may
perform, various financial advisory and other services for Fifth Third and Fifth
Third's affiliates for which they have received, and may in the future receive,
customary fees and expenses.
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