Summary
This Form 8-K filing by State Street Corporation (STT), dated September 5, 2012, announces the redemption of its Non-Cumulative Perpetual Preferred Stock, Series A. The redemption notice was issued on September 4, 2012, with an effective redemption date of October 4, 2012. This action involves State Street Capital Trust III, which will use proceeds from the redemption of the Series A Preferred Stock and a declared dividend to redeem outstanding securities issued by the trust, specifically the 8.250% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities (Normal APEX). The redemption price for the Series A Preferred Stock is set at $100,000 per share, totaling a significant amount for the 5,001 outstanding shares. A dividend on the Series A Preferred Stock was also declared, calculated based on a floating rate (LIBOR plus a spread, capped at 14.990%) and the number of days until the redemption date. This dividend will be paid concurrently with the redemption. Investors holding the Normal APEX securities will receive their redemption amount and a pro rata portion of the dividend.
Key Highlights
- 1State Street Corporation (STT) announced the redemption of its Non-Cumulative Perpetual Preferred Stock, Series A.
- 2The redemption date for Series A Preferred Stock, Normal APEX, and Trust Common Securities is October 4, 2012.
- 3The redemption price for each share of Series A Preferred Stock is $100,000.
- 4A dividend on the Series A Preferred Stock was declared, payable on the redemption date, with a rate linked to LIBOR and capped at 14.990%.
- 5The redemption is being executed through State Street Capital Trust III, utilizing proceeds to retire associated securities (Normal APEX).
- 6No vote or consent from holders of the redeemed securities is required.
- 7The total number of Series A Preferred Stock shares to be redeemed is 5,001.