Citizens Financial Group, Inc. CFG priced a debt offering by its wholly-owned subsidiary Citizens Bank. The company priced $1 billion of 2.550% senior unsecured notes due May 13, 2021, at an issue price of 99.907%.
Subject to customary closing conditions, the offering is anticipated to close on May 13, 2016. Notably, the offering is made under the bank’s Global Bank Note Program.
The senior notes offering will aid in diversifying the funding sources of Citizens Bank. The company plans to use the net proceeds from the offering to meet general corporate purposes.
Joint bookrunning managers of the notes offering include Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, and J.P. Morgan Securities LLC.
Since the RBS Group offloaded its remaining stake in Citizens Financial last November, the company is operating independently with focus on its several strategic initiatives which are likely to boost revenues and improve efficiency.
Citizens Financial boasts a healthy balance sheet position as well. As of Mar 31, 2016, period end total loan and lease balances increased 7% year over year to $101.7 billion, reflecting a growth in commercial and retail loan portfolios. Also, period end total deposits rose 4% from the prior-year quarter to $102.6 billion.
Citizens Financial currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the finance space include Northwest Bancshares, Inc. NWBI, OceanFirst Financial Corp. OCFC and Flagstar Bancorp Inc. FBC, each sporting a Zacks Rank #1 (Strong Buy).
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