Summary
State Street Corporation (STT) announced the dissolution of two capital trusts, State Street Capital Trust I and State Street Capital Trust IV, effective December 21, 2016. This action will result in the automatic exchange of floating rate capital securities held by investors in these trusts for a like principal amount of State Street's floating rate junior subordinated debentures. Specifically, holders of Trust I Securities will receive 2028 Debentures, and holders of Trust IV Securities will receive 2037 Debentures. This restructuring is a material modification to the rights of these security holders. While the exchange is automatic and requires no action from investors, it's important to note the change in the nature of the security from trust preferred securities to subordinated debentures. The upcoming interest payment will incorporate any accrued but unpaid distributions from the trusts. The new debentures will be issued in global form and remain subject to the terms of their respective indentures.
Key Highlights
- 1State Street Corporation (STT) is dissolving State Street Capital Trust I and State Street Capital Trust IV.
- 2The dissolution is effective as of December 21, 2016.
- 3Holders of Trust I floating rate capital securities will receive State Street's floating rate junior subordinated debentures due 2028.
- 4Holders of Trust IV floating rate capital securities will receive State Street's floating rate junior subordinated debentures due 2037.
- 5The exchange of securities is automatic and requires no action from security holders.
- 6The next interest payment will include any accrued and unpaid distributions from the trusts.
- 7The new debentures will be issued in global form and subject to existing indenture provisions.