8-KShareholder MattersCorporate ChangesOther Events+1

STATE STREET CORP 8-K Report, Rights Modification (Sep 25, 2018)

Filed September 25, 2018For Securities:STTSTT-PG

Summary

State Street Corporation (STT) filed an 8-K on September 25, 2018, to report on significant corporate actions, primarily related to the issuance of new preferred stock and its intended use of proceeds. The company filed Articles of Amendment to establish the designations, preferences, and rights of its Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. This was followed by an underwritten public offering of 500,000 depositary shares, each representing an interest in this new preferred stock. The primary purpose for the net proceeds of approximately $493.7 million from this offering is to fund a portion of the cash consideration and associated costs for the acquisition of Charles River Development. This strategic move indicates State Street's intention to expand its operations through acquisition. Should the acquisition not be completed, the proceeds will be used for general corporate purposes, providing a fallback plan for capital allocation.

Key Highlights

  • 1State Street Corporation established Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock through Articles of Amendment.
  • 2The company conducted an underwritten public offering of 500,000 depositary shares, each representing a 1/100th interest in the Series H Preferred Stock.
  • 3The public offering generated approximately $493.7 million in net proceeds for State Street.
  • 4The primary intended use of the net proceeds is to finance the acquisition of Charles River Development.
  • 5If the Charles River Development acquisition does not close, the proceeds will be allocated to general corporate purposes.
  • 6The offering was made pursuant to a Registration Statement on Form S-3 and related prospectus supplements.

Frequently Asked Questions

The net proceeds of approximately $493.7 million raised from the offering of depositary shares are intended to fund a portion of the cash consideration and associated costs for the acquisition of Charles River Development.

If the acquisition of Charles River Development is not completed, State Street intends to use the net proceeds from the offering for general corporate purposes.

State Street issued 500,000 depositary shares, each representing a 1/100th ownership interest in its newly established Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock.

This 8-K filing was made on September 25, 2018, and it reports on the establishment and public offering of State Street's Series H Preferred Stock, with proceeds earmarked for the acquisition of Charles River Development.