Summary
State Street Corporation (STT) filed an 8-K report on August 20, 2012, detailing significant actions related to its preferred stock. The company amended its Articles of Organization to establish Series C Non-Cumulative Perpetual Preferred Stock. Concurrently, STT entered into an underwriting agreement for a public offering of 20,000,000 depositary shares, each representing a fractional ownership interest in this new Series C Preferred Stock. The primary purpose of this offering, which priced the depositary shares at $25 each, is to raise approximately $487.5 million in net proceeds. These funds are earmarked for the redemption of all outstanding Series A Preferred Stock held by State Street Capital Trust III. This strategic move aims to optimize the company's capital structure and manage its preferred stock obligations.
Key Highlights
- 1State Street Corporation is amending its Articles of Organization to create Series C Non-Cumulative Perpetual Preferred Stock.
- 2The company is conducting a public offering of 20,000,000 depositary shares, each representing an interest in the new Series C Preferred Stock.
- 3The offering is priced at $25 per depositary share.
- 4State Street expects to raise approximately $487.5 million in net proceeds from this offering.
- 5The net proceeds will be used to redeem all outstanding Series A Preferred Stock from State Street Capital Trust III.
- 6This action is part of a broader strategy involving the redemption of related capital securities and common securities from State Street Capital Trust III.