N@N

U.S. Bancorp Prices Remarketing of 3.442 Percent Remarketed Junior Subordinated Notes Due 2016

^{Published on 2011-01-27 14:25:54 - Market Wire}
 

MINNEAPOLIS--([ BUSINESS WIRE ])--U.S. Bancorp (NYSE: USB) announced today the successful remarketing of $676,378,000 aggregate principal amount of 3.442 percent Remarketed Junior Subordinated Notes, due 2016 (the aRemarketed Notesa). We issued the Remarketed Notes originally as 5.539 percent Remarketable Junior Subordinated Notes, due 2042 (the aJunior Subordinated Notesa), to USB Capital IX, a Delaware statutory trust (the aTrusta), in connection with the offering of the Trusta™s 6.189 percent Fixed-to-Floating Rate Normal Income Trust Securities, liquidation amount $1,000 per security, in March 2006.

In connection with the remarketing, the interest rate on the Junior Subordinated Notes was reset to 3.442percent and the stated maturity shortened to February 1, 2016, along with certain other changes. The remarketing will settle on February 1, 2011. The net proceeds from the remarketing will be used to satisfy the obligations of the Trust under a stock purchase contract agreement, pursuant to which the Trust is obligated to purchase, and U.S. Bancorp is obligated to sell, on April 15, 2011, a total of 6,763.78 shares of our Series A Non-Cumulative Perpetual Preferred Stock, $100,000 liquidation preference per share.

Deutsche Bank Securities Inc. acted as joint lead remarketing agent and structuring advisor in connection with the remarketing along with Credit Suisse Securities (USA) LLC and U.S. Bancorp Investments, Inc. as joint lead remarketing agents.

U.S. Bancorp has filed a registration statement, including a prospectus, with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the preliminary prospectus supplement, and other documents U.S. Bancorp has filed with the SEC for more complete information about U.S. Bancorp and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at [ www.sec.gov ]. Alternatively, you can request these documents by calling Deutsche Bank Securities Inc. toll free at 1 (800) 503-4611, Credit Suisse Securities (USA) LLC toll free at 1 (800) 221-1037 or U.S. Bancorp Investments, Inc. toll free at 1 (800) 888-4700 (option #3).

This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any security.

Minneapolis-based U.S. Bancorp, with $308 billion in assets, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States. U.S. Bancorp operates 3,031 banking offices in 24 states and 5,310 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at usbank.com.

Forward-Looking Statements

The following information appears in accordance with the Private Securities Litigation Reform Act of 1995:

This press release contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date made. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of U.S. Bancorp. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. Global and domestic economies could fail to recover from the recent economic downturn or could experience another severe contraction, which could adversely affect U.S. Bancorp's revenues and the values of its assets and liabilities. Global financial markets could experience a recurrence of significant turbulence, which could reduce the availability of funding to certain financial institutions and lead to a tightening of credit, a reduction of business activity, and increased market volatility. Stress in the commercial real estate markets, as well as a delay or failure of recovery in the residential real estate markets, could cause additional credit losses and deterioration in asset values. In addition, U.S. Bancorp's business and financial performance is likely to be impacted by effects of recently enacted and future legislation and regulation. U.S. Bancorp's results could also be adversely affected by continued deterioration in general business and economic conditions; changes in interest rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of securities held in its investment securities portfolio; legal and regulatory developments; increased competition from both banks and non-banks; changes in customer behavior and preferences; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management's ability to effectively manage credit risk, residual value risk, market risk, operational risk, interest rate risk and liquidity risk.

For discussion of these and other risks that may cause actual results to differ from expectations, refer to U.S. Bancorp's Annual Report on Form 10-K for the year ended December 31, 2009, on file with the Securities and Exchange Commission, including the sections entitled "Risk Factors" and "Corporate Risk Profile" contained in Exhibit 13, and all subsequent filings with the Securities and Exchange Commission under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934. Forward-looking statements speak only as of the date they are made, and U.S. Bancorp undertakes no obligation to update them in light of new information or future events.