Fifth Third Bancorp (FITB) in Cincinnati plans to redeem $750 million of trust-preferred securities.

The $126 billion-asset company plans to redeem the notes, and pay about $10.3 million in unpaid dividends, on Dec. 30, it announced last week. It will use available cash to fund the redemption.

The publication of final regulatory capital rules by the Federal Reserve and the Office of the Comptroller of the Currency gives Fifth Third the opportunity to call the notes. The notes have a repayment date in 2067 and pay 6.50% interest, but the securities agreement that governs them says they can be called in the event of a "capital treatment event," and the new rules quality as such an event, Fifth Third said.

Wilmington Trust is the agent for the redemption.

Fifth Third agreed last week to pay Freddie Mac $25 million to settle claims that it sold faulty mortgages to the government-sponsored entity.

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