What is the specific security being redeemed by State Street?

State Street is redeeming all of its outstanding non-cumulative perpetual preferred stock, Series E. This is represented by depositary shares, where each depositary share represents a 1/4000th interest in a share of Series E preferred stock.

When will the redemption take place and at what price?

The redemption is scheduled to occur on December 15, 2019. The redemption price is $100,000 per share of Series E preferred stock, which equates to $25.00 per depositary share. Additionally, any dividends that have been declared but not yet paid up to, but not including, the redemption date will also be paid.

Is this redemption part of a broader strategic initiative?

Yes, this redemption is in addition to State Street's original capital plan submitted as part of the 2019 Comprehensive Capital Analysis and Review (CCAR) cycle. The fact that it has received approval from the Federal Reserve indicates it aligns with the company's overall capital management and regulatory strategy.

What does this redemption imply for State Street's financial health or strategy?

Redeeming preferred stock often suggests that the company believes it can finance its operations more cost-effectively through other means (like debt or retained earnings) or that it wants to simplify its capital structure. Regulatory approval from the Federal Reserve is a positive signal, indicating that the company's capital position is considered sound and that this action is viewed favorably by regulators.

STT/STT-PG 8-K SEC Disclosure

Summary

State Street Corporation (STT) announced on November 6, 2019, its intention to redeem all outstanding shares of its non-cumulative perpetual preferred stock, Series E, on December 15, 2019. This redemption involves 7,500 preferred shares, with a redemption price of $100,000 per share (or $25.00 per depositary share), plus any declared but unpaid dividends. This action is part of State Street's capital management strategy and has received regulatory approval from the Federal Reserve, indicating a proactive approach to optimizing its capital structure.

Key Highlights

1State Street will redeem all 7,500 outstanding Series E preferred stock shares on December 15, 2019.
2The redemption price is set at $100,000 per share of Series E preferred stock.
3Each depositary share will be redeemed for $25.00.
4Accrued and unpaid dividends up to the redemption date will also be paid.
5This redemption is an addition to State Street's existing capital plan from the 2019 CCAR cycle.
6The redemption has received approval from the Federal Reserve, signaling regulatory confidence.
7This move suggests State Street is actively managing its capital structure and potentially reducing its cost of capital or simplifying its equity profile.

STATE STREET CORP 8-K Report, Corporate Update (Nov 6, 2019)

Summary

Key Highlights

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