8-KOther EventsExhibits & Filings

SCHWAB CHARLES CORP 8-K Report, Corporate Update (May 22, 2019)

Filed May 22, 2019For Securities:SCHWSCHW-PDSCHW-PJ

Summary

The Charles Schwab Corporation (SCHW) filed an 8-K on May 22, 2019, reporting the issuance of $600 million in aggregate principal amount of 3.250% Senior Notes due 2029. This debt issuance was completed under the company's existing shelf registration statement and involved an underwriting agreement with Credit Suisse Securities (USA) LLC, BofA Securities, Inc., and Citigroup Global Markets Inc. as representatives of the underwriters. This filing is primarily informational, detailing the terms and execution of the debt offering. Investors should note that this action represents a standard financing activity for a company of Schwab's size and nature, aimed at managing its capital structure and potentially funding ongoing operations or growth initiatives. The fixed interest rate of 3.250% provides clarity on the cost of this debt for the next decade.

Key Highlights

  • 1Issued $600 million in 3.250% Senior Notes due 2029.
  • 2The issuance took place on May 22, 2019.
  • 3The notes were issued under the company's shelf registration statement on Form S-3.
  • 4Key underwriters involved include Credit Suisse Securities (USA) LLC, BofA Securities, Inc., and Citigroup Global Markets Inc.
  • 5The offering was governed by an Underwriting Agreement and a Thirteenth Supplemental Indenture.
  • 6The filing includes exhibits detailing the Underwriting Agreement, Supplemental Indenture, and form of the Senior Note.

Frequently Asked Questions

This 8-K filing announces and provides details about The Charles Schwab Corporation's issuance of $600 million in Senior Notes due 2029. It serves to officially report this material event to investors and the public.

The Senior Notes have an aggregate principal amount of $600,000,000, carry a fixed interest rate of 3.250%, and mature in 2029.

This issuance increases Schwab's total debt by $600 million. While it adds to the company's leverage, it also provides capital that can be used for various corporate purposes such as funding operations, acquisitions, or other strategic initiatives. The fixed interest rate provides predictable financing costs over the next decade.

The lead underwriters for this offering were Credit Suisse Securities (USA) LLC, BofA Securities, Inc., and Citigroup Global Markets Inc., acting as representatives for the several underwriters named in the Underwriting Agreement.