8-KShareholder Matters

STATE STREET CORP 8-K Report, Rights Modification (Jun 12, 2017)

Filed June 12, 2017For Securities:STTSTT-PG

Summary

State Street Corporation (STT) has announced a material modification to the rights of its security holders concerning its floating rate junior subordinated debentures due 2037. The company has elected to exercise its option to extend both the scheduled maturity date and the final repayment date of these debentures. This action, effective June 15, 2017, will push the scheduled maturity from June 15, 2037, to June 15, 2047, and the final repayment date from June 1, 2067, to June 1, 2077. This extension effectively means the company is deferring its obligation to repay this specific tranche of junior subordinated debt for an additional ten years in scheduled maturity and twenty years in final repayment. Investors holding these debentures should note the extended timeline for repayment. The underlying terms and conditions of the indenture remain in effect, and the debentures are registered in the name of Cede & Co., nominee of The Depository Trust Company.

Key Highlights

  • 1State Street Corporation (STT) is extending the maturity of its floating rate junior subordinated debentures due 2037.
  • 2The scheduled maturity date is extended by 10 years, from June 15, 2037, to June 15, 2047.
  • 3The final repayment date is extended by 20 years, from June 1, 2067, to June 1, 2077.
  • 4This action is taken by exercising an option within the existing Junior Subordinated Indenture.
  • 5The modification is effective as of June 15, 2017.
  • 6All other provisions of the Indenture remain unchanged.
  • 7The debentures are registered in the name of Cede & Co., a nominee for The Depository Trust Company.

Frequently Asked Questions

The filing concerns State Street Corporation's floating rate junior subordinated debentures originally due in 2037.

The company is extending the scheduled maturity date by 10 years (to June 15, 2047) and the final repayment date by 20 years (to June 1, 2077). This means State Street has more time before it is obligated to repay these debentures.

The filing states that the debentures remain subject to the other provisions of the Indenture. While not explicitly detailed in this excerpt, typically interest payments would continue as per the original terms until the new maturity/repayment dates, but investors should consult the full indenture for definitive terms regarding interest adjustments or continuation.

This extension allows State Street to retain capital for a longer period, potentially improving its liquidity and capital management flexibility. It defers a significant repayment obligation, which can be a strategic financial decision.