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Subsequent Events
3 Months Ended
Mar. 31, 2013
Subsequent Event

21. Subsequent Event

On May 7, 2013, Vantiv, Inc. priced a secondary offering of 38.6 million shares of Class A Common Stock of Vantiv, Inc., including 15.6 million shares of Class A Common Stock of Vantiv, Inc. to be sold on behalf of the Bancorp. The offering is expected to be settled on May 15, 2013. As a result of this offering, the Bancorp's ownership of Vantiv Holding, LLC will be reduced to approximately 28% and the Bancorp's investment will continue to be accounted for as an equity method investment in the Bancorp's Condensed Consolidated Financial Statements. The impact of the sale of the Bancorp's interest in Vantiv Holding, LLC will result in the recognition of a pre-tax gain of approximately $225 million ($145 million after-tax) by the Bancorp in the second quarter of 2013. The underwriters of the offering have an option, solely to cover over-allotments and is exercisable for 30 days from the date of pricing, to purchase an additional 796,310 shares of Vantiv, Inc. Class A Common Stock from the Bancorp.

 

Upon completion of the sale of the 15.6 million shares of Class A Common Stock of Vantiv, Inc., the Bancorp continued to hold approximately 54.6 Class B units of Vantiv Holding, LLC and a warrant to purchase approximately 20.4 Class C non-voting units of Vantiv Holding, LLC, both of which may be exchanged for Class A Common Stock of Vantiv, Inc. on a one for one basis or at Vantiv, Inc.'s option for cash. In addition, the Bancorp holds approximately 54.6 Class B common shares of Vantiv, Inc. The Class B common shares give the Bancorp voting rights, but no economic interest in Vantiv, Inc. The voting rights attributable to the Class B common shares are limited to 18.5% of the voting power in Vantiv, Inc. at any time other than in connection with a stockholder vote with respect to a change in control in Vantiv, Inc. These securities are subject to certain terms and restrictions.