8-KOther EventsExhibits & Filings

STATE STREET CORP 8-K Report, Corporate Update (Oct 21, 2019)

Filed October 21, 2019For Securities:STTSTT-PG

Summary

State Street Corporation (STT) announced a cash tender offer for any and all of its $800 million aggregate principal amount of outstanding Floating Rate Junior Subordinated Debentures due 2047. This move by its principal banking subsidiary, State Street Bank and Trust Company, aims to manage its outstanding debt. The offer is subject to certain conditions, including the termination of a replacement capital covenant and expires on November 20, 2019, with an early tender payment deadline of November 1, 2019. In addition to the tender offer, State Street also announced the redemption of $50.1 million of its Floating Rate Junior Subordinated Deferrable Interest Debentures, Series A, due May 15, 2028. This partial redemption, at par plus accrued interest, is scheduled for November 20, 2019. These actions suggest a proactive approach to optimizing the company's capital structure and managing its debt obligations.

Key Highlights

  • 1State Street Bank and Trust Company launched a cash tender offer for all $800 million of its Floating Rate Junior Subordinated Debentures due 2047.
  • 2The tender offer is set to expire on November 20, 2019, unless extended.
  • 3An early tender payment is available for debentures validly tendered and not withdrawn by November 1, 2019.
  • 4The tender offer is conditioned on the termination of State Street's replacement capital covenant, expected around November 20, 2019.
  • 5State Street will redeem $50.1 million of its Floating Rate Junior Subordinated Deferrable Interest Debentures, Series A, due 2028.
  • 6The redemption date for the 2028 Debentures is November 20, 2019.
  • 7The redemption price for the 2028 Debentures will be the outstanding principal amount plus accrued and unpaid interest.

Frequently Asked Questions

State Street Bank and Trust Company, State Street's principal banking subsidiary, has commenced a cash tender offer to purchase any and all of its outstanding $800 million aggregate principal amount of Floating Rate Junior Subordinated Debentures due 2047. This is an offer to buy back these specific bonds from investors.

The tender offer is scheduled to expire at 5:00 p.m. New York City time on November 20, 2019. However, to be eligible for an early tender payment, debenture holders must validly tender their securities and not withdraw them by 5:00 p.m. New York City time on November 1, 2019.

State Street is redeeming $50.1 million of its $150 million aggregate principal amount of Floating Rate Junior Subordinated Deferrable Interest Debentures, Series A, due May 15, 2028. This redemption will occur on November 20, 2019, at the outstanding principal amount plus accrued interest.

Yes, a key condition is the termination of State Street's replacement capital covenant, which is anticipated around November 20, 2019. Other general conditions, as detailed in the Offer to Purchase document, also apply. The tender offer is not contingent on a minimum amount of debentures being tendered.