Citizens Financial Group in Providence, R.I., plans to repurchase $125 million in subordinated notes to improve its efficiency and capital structure.

The $138 billion-asset company will repurchase 4.023% notes due 2024. The transaction is expected to close March 7.

The repurchase will move Citizens' Tier 2 capital levels "closer to peers," Eric Aboaf, chief financial officer, said in a Wednesday news release. The transaction will also give Citizens more flexibility for its upcoming Comprehensive Capital Analysis and Review.

Citizens in November said it secured the ability to repurchase $500 million of subordinated notes, subject to regulatory approval as part of its CCAR stress test.

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