Summary
The Charles Schwab Corporation (SCHW) has announced the issuance of $1 billion in aggregate principal amount of 4.603% Fixed-to-Floating Rate Senior Notes due 2029. This transaction, which closed on June 25, 2026, raised approximately $995.5 million in net proceeds after accounting for underwriting discounts, commissions, and offering expenses. The issuance was conducted under an established shelf registration statement and indenture framework, ensuring compliance with regulatory requirements. This debt offering provides Schwab with additional capital, strengthening its financial position and flexibility. Investors should note that these are senior unsecured notes, and their interest rate will transition from a fixed rate to a floating rate in the future. The proceeds are expected to be used for general corporate purposes, which may include supporting its ongoing business operations and strategic initiatives.
Key Highlights
- 1Issuance of $1 billion in 4.603% Fixed-to-Floating Rate Senior Notes due 2029.
- 2Net proceeds of approximately $995.5 million raised.
- 3Offering completed on June 25, 2026.
- 4Notes are governed by the Senior Indenture dated November 14, 2025, and a Third Supplemental Indenture dated June 29, 2026.
- 5Debt offering conducted under an effective registration statement on Form S-3.
- 6Underwriting agreement was established with Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC as representatives.
- 7The notes will convert from a fixed interest rate to a floating rate at a future point.