8-KShareholder MattersCorporate ChangesOther Events+1

STATE STREET CORP 8-K Report, Rights Modification (Mar 3, 2014)

Filed March 3, 2014For Securities:STTSTT-PG

Summary

This 8-K filing by State Street Corporation on March 3, 2014, primarily details the issuance and sale of new preferred stock through depositary shares. The company amended its Articles of Organization to establish the "Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D." This was followed by an underwriting agreement to offer 30,000,000 depositary shares, each representing an interest in this new preferred stock, at a price of $25 per share. The offering generated approximately $741.8 million in net proceeds for State Street. These funds are intended for general corporate purposes, which offer flexibility and could include working capital, capital expenditures, acquisitions, investments, debt refinancing, share repurchases, dividends, and other obligations. Investors should note the creation of a new series of preferred stock and the significant capital raised through its public offering.

Key Highlights

  • 1State Street Corporation filed Articles of Amendment to create Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series D.
  • 2Entered into an Underwriting Agreement on February 25, 2014, for the issuance of 30,000,000 depositary shares.
  • 3Each depositary share represents a 1/4,000th ownership interest in the new Series D Preferred Stock.
  • 4The public offering price was set at $25 per depositary share.
  • 5Net proceeds from the offering are estimated to be approximately $741.8 million.
  • 6Proceeds are designated for general corporate purposes, providing significant financial flexibility.
  • 7The filing includes references to the relevant Underwriting Agreement and Articles of Amendment as exhibits.

Frequently Asked Questions

The main purpose of this filing is to report on State Street Corporation's amendment of its Articles of Organization to create a new series of preferred stock (Series D) and to announce the details of a public offering and sale of depositary shares representing interests in this preferred stock.

State Street raised approximately $741.8 million in net proceeds from the offering after deducting expenses and underwriting fees.

The net proceeds are intended for general corporate purposes, which offer broad flexibility and may include working capital, capital expenditures, funding potential acquisitions, investments, debt refinancing, share repurchases, dividends, and other obligations.

A depositary share, in this context, is a security that represents a fraction (1/4,000th) of a share of the newly created Series D Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. This structure is often used to make preferred stock more accessible to a wider range of investors.