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- 3An early tender payment is available for debentures validly tendered and not withdrawn by November 1, 2019.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.