Minneapolis-based U.S. Bancorp on Aug. 7 filed a final term sheet for the sale of 23 million depositary shares.

Each depositary share represents a 1/1,000th interest in a share of noncumulative perpetual preferred stock, series K, with a liquidation preference of $25,000 per share of the preferred stock.

The maximum aggregate offering price is $575 million. The public offering price per depositary share is $25.

Dividends on the preferred stock will accrue on a noncumulative basis and will be payable from the date of initial issuance, at a rate of 5.50% per year, payable quarterly on Jan. 15, April 15, July 15 and Oct. 15 of each year, beginning Oct. 15.

The series K preferred stock may be redeemed, in whole or in part, on or after Oct. 15, 2023, at a redemption price equal to $25,000 per share, equivalent to $25 per depositary share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The preferred stock may be redeemed, in whole but not in part, at any time prior to Oct. 15, 2023, upon the occurrence of regulatory capital treatment event, at a redemption price equal to $25,000 per share, equivalent to $25 per depositary share, plus any declared and unpaid dividends, without accumulation of any undeclared dividends.

The net proceeds from the offering, before expenses, are expected to be approximately $563.9 million.

The trade date is Aug. 7 and the settlement date is Aug. 14.

Morgan Stanley & Co. LLC, U.S. Bancorp Investments Inc., Merrill Lynch Pierce Fenner & Smith Inc., UBS Securities LLC and Wells Fargo Securities LLC are acting as joint book-running managers for the offering, while Goldman Sachs & Co. LLC, Incapital LLC, J.P. Morgan Securities LLC and RBC Capital Markets LLC are acting as co-managers.