8-KOther EventsExhibits & Filings

STATE STREET CORP 8-K Report, Corporate Update (Sep 27, 2018)

Filed September 27, 2018For Securities:STTSTT-PG

Summary

State Street Corporation (STT) has filed an 8-K report detailing the successful completion of a public offering of 500,000 depositary shares representing ownership in its Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. The offering, which took place on September 27, 2018, generated approximately $493.7 million in net proceeds for the company after deducting expenses and underwriting fees. These new preferred shares carry a liquidation preference of $100,000 per share (or $1,000 per depositary share) and are designed to convert from a fixed to a floating rate over time. This issuance diversifies State Street's capital structure and strengthens its financial position, which is crucial for a large financial institution. The net proceeds will contribute to its overall capital base, supporting its ongoing business operations and strategic initiatives. The filing also includes the necessary exhibits related to the underwriting, the establishment of the preferred stock series, the deposit agreement, and legal opinions, providing transparency to investors regarding the terms and conditions of this significant capital-raising event.

Key Highlights

  • 1State Street Corporation completed a public offering of 500,000 depositary shares, each representing an interest in Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock.
  • 2The offering generated approximately $493.7 million in net proceeds for State Street after expenses and underwriting discounts.
  • 3The Series H Preferred Stock has a liquidation preference of $100,000 per share, equivalent to $1,000 per depositary share.
  • 4The preferred stock is designed with a fixed-to-floating rate feature, indicating a potential adjustment in interest payments over its term.
  • 5The issuance was conducted under a Form S-3 registration statement and a related prospectus supplement.
  • 6Key legal agreements, including the Underwriting Agreement and Deposit Agreement, are filed as exhibits to this report.

Frequently Asked Questions

This 8-K filing announces and provides details about State Street Corporation's public offering and sale of 500,000 depositary shares representing ownership in its Series H Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock. It details the net proceeds raised and references the associated legal documentation.

State Street raised approximately $493.7 million in net proceeds from the offering after deducting expenses and underwriting discounts and commissions.

The Series H Preferred Stock is a non-cumulative perpetual preferred stock with a liquidation preference of $100,000 per share. It is designed to have a fixed-to-floating rate structure. The depositary shares represent a 1/100th ownership interest in a share of this preferred stock.

The underwriters included Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and Wells Fargo Securities, LLC, acting as representatives for the several underwriters listed in the Underwriting Agreement.