8-KOther EventsExhibits & Filings

STATE STREET CORP 8-K Report, Corporate Update (Dec 3, 2018)

Filed December 3, 2018For Securities:STTSTT-PG

Summary

State Street Corporation (STT) announced on December 3, 2018, the successful completion of a public offering of $1 billion in aggregate principal amount of senior notes. This offering comprises $500 million in Fixed-to-Floating Rate Senior Notes due 2024 and $500 million in Fixed-to-Floating Rate Senior Notes due 2029. The issuance was conducted under a registration statement on Form S-3 and a related prospectus supplement filed with the SEC. Investors can interpret this issuance as a strategic move by State Street to strengthen its capital structure and potentially fund its ongoing operations and strategic initiatives. The company expects to receive net proceeds of approximately $995.2 million, after accounting for expenses and underwriting fees. The fixed-to-floating rate structure of these notes suggests a strategy to manage interest rate risk, potentially offering some protection if interest rates rise in the future.

Key Highlights

  • 1State Street Corporation successfully issued $1 billion in aggregate principal amount of Senior Notes.
  • 2The offering includes $500 million in notes due 2024 and $500 million in notes due 2029.
  • 3The notes are structured as Fixed-to-Floating Rate Senior Notes.
  • 4The issuance was conducted via a public offering under a Form S-3 registration statement.
  • 5State Street expects to receive net proceeds of approximately $995.2 million from the offering.
  • 6The offering was underwritten by a syndicate of major financial institutions including Merrill Lynch, Citigroup, Deutsche Bank, and J.P. Morgan.

Frequently Asked Questions

While the filing doesn't explicitly state the purpose, debt issuances like this are typically used by companies to raise capital for various corporate purposes, which could include funding operations, acquisitions, strategic investments, or strengthening their capital base. The net proceeds of approximately $995.2 million suggest a significant capital infusion.

This means the interest rate on the notes will initially be fixed for a certain period. After that initial period, the interest rate will convert to a floating rate, which typically adjusts periodically based on a benchmark interest rate (like LIBOR or SOFR, depending on the time and terms). This structure can offer investors some protection against rising interest rates.

The offering includes two series of notes: the Fixed-to-Floating Rate Senior Notes due 2024 and the Fixed-to-Floating Rate Senior Notes due 2029. Therefore, the maturities are in 2024 and 2029, respectively.

The underwriters for this offering included Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and J.P. Morgan Securities LLC, acting as representatives for the syndicate of underwriters.