8-KOther EventsExhibits & Filings

ALLSTATE CORP 8-K Report, Corporate Update (Sep 25, 2013)

Filed September 25, 2013For Securities:ALLALL-PJALL-PBALL-PHALL-PI

Summary

This 8-K filing by The Allstate Corporation (ALL) on September 24, 2013, reports on a significant capital markets transaction. The company entered into an Underwriting Agreement on September 23, 2013, to offer and sell 14,000,000 depositary shares. Each depositary share represents a 1/1000th interest in the company's Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. This issuance aims to raise capital, likely to bolster its financial position or fund strategic initiatives. The transaction was registered under a Form S-3 registration statement and involved a syndicate of prominent underwriters, including Wells Fargo Securities, Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley, and UBS. An overallotment option for an additional 2,100,000 depositary shares was also granted, indicating potential strong demand or a strategic decision to maximize capital raise. Investors should note that this is a preferred stock issuance, which carries different risk and return profiles compared to common stock.

Key Highlights

  • 1Allstate Corporation entered into an Underwriting Agreement on September 23, 2013.
  • 2The company is offering 14,000,000 depositary shares for sale.
  • 3Each depositary share represents a 1/1000th interest in Allstate's Fixed Rate Noncumulative Perpetual Preferred Stock, Series C.
  • 4The Series C Preferred Stock has a liquidation preference of $25,000 per share.
  • 5A syndicate of major investment banks acted as underwriters for the offering.
  • 6Underwriters have an option to purchase an additional 2,100,000 depositary shares to cover over-allotments.
  • 7The offering was registered under Allstate's Form S-3 registration statement (File No. 333-181059).

Frequently Asked Questions

This 8-K filing is to report a material event: The Allstate Corporation's entry into an Underwriting Agreement for the sale of preferred stock (represented by depositary shares).

The company is offering depositary shares, each representing a 1/1000th interest in its Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. This is a type of preferred equity security.

Allstate is offering 14,000,000 depositary shares. The total capital raised will depend on the price per share, but this indicates a substantial offering. Additionally, underwriters have an option to buy more shares, potentially increasing the capital raised.

The offering involves The Allstate Corporation as the issuer and a group of well-known investment banks (Wells Fargo Securities, Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley, and UBS) acting as underwriters.