Summary
State Street Corporation (STT) filed an 8-K on August 21, 2012, to report on the successful issuance and sale of 20,000,000 depositary shares. These shares represent an interest in its Non-Cumulative Perpetual Preferred Stock, Series C. The offering generated approximately $487.5 million in net proceeds for the company after deducting underwriting discounts and commissions. This transaction signals State Street's proactive approach to capital management and its ability to access public markets. The net proceeds are expected to strengthen the company's capital position, which is crucial for financial institutions, especially in the evolving economic climate of 2012. Investors should note the nature of the preferred stock, which has specific dividend and liquidation preferences, and the role of the depositary agreement in facilitating the trading of these shares.
Key Highlights
- 1State Street Corporation successfully completed a public offering of 20,000,000 depositary shares on August 21, 2012.
- 2The depositary shares represent ownership interests in State Street's Non-Cumulative Perpetual Preferred Stock, Series C.
- 3The offering generated approximately $487.5 million in net proceeds for the company.
- 4These net proceeds were achieved after accounting for expenses and underwriting discounts.
- 5The transaction was conducted under a registration statement on Form S-3 and involved a consortium of underwriters led by major financial institutions.
- 6A deposit agreement was entered into with American Stock Transfer & Trust Company, LLC, as the depositary for the shares.