8-KOther EventsExhibits & Filings

SCHWAB CHARLES CORP 8-K Report, Corporate Update (Dec 6, 2012)

Filed December 6, 2012For Securities:SCHWSCHW-PDSCHW-PJ

Summary

The Charles Schwab Corporation filed an 8-K report on December 6, 2012, disclosing the successful offering and consummation of $350 million in aggregate principal amount of 0.850% Senior Notes due 2015. This debt issuance, agreed upon on December 3, 2012, was facilitated through an Underwriting Agreement with Citigroup Global Markets Inc. and Goldman, Sachs & Co. as representatives for the underwriters. The notes were issued under the company's existing Senior Indenture, with the terms further defined by a Fourth Supplemental Indenture dated December 6, 2012. This offering was conducted under the company's shelf registration statement on Form S-3. The filing also includes various exhibits such as the underwriting agreement, supplemental indenture, the form of the senior note, and legal opinions related to the transaction.

Key Highlights

  • 1The Charles Schwab Corporation successfully issued $350 million in 0.850% Senior Notes due 2015.
  • 2The offering was consummated on December 6, 2012.
  • 3The notes were sold under an Underwriting Agreement with Citigroup Global Markets Inc. and Goldman, Sachs & Co. as lead underwriters.
  • 4The issuance was made pursuant to a shelf registration statement on Form S-3.
  • 5The notes are governed by a Senior Indenture dated June 5, 2009, and supplemented by a Fourth Supplemental Indenture dated December 6, 2012.
  • 6The filing includes the Underwriting Agreement, the Fourth Supplemental Indenture, and the form of the Senior Note as exhibits.

Frequently Asked Questions

The primary purpose of this 8-K filing was to report on the material event of The Charles Schwab Corporation successfully issuing $350 million in Senior Notes due 2015.

The Senior Notes have a coupon rate of 0.850% and mature in 2015.

While the 8-K does not explicitly state the purpose of the debt issuance, companies typically issue debt to fund operations, acquisitions, refinance existing debt, or for general corporate purposes. Investors should consult other filings or company statements for detailed reasons.

Issuing $350 million in senior notes will increase the company's total debt and consequently its financial leverage. Investors should assess this against the company's overall balance sheet strength and cash flow generation capabilities.