Summary
State Street Corporation (STT) announced on March 3, 2021, the successful completion of a public offering of $850 million in aggregate principal amount of 2.200% Senior Subordinated Notes due 2031. The company expects to receive net proceeds of approximately $842.4 million from this offering, after accounting for estimated expenses and underwriting discounts. This issuance, conducted under a registration statement on Form S-3, provides State Street with additional long-term financing. The net proceeds from the offering will bolster State Street's capital structure and liquidity, supporting its ongoing business operations and strategic initiatives. The notes are senior subordinated debt, indicating their place in the capital hierarchy below senior secured and senior unsecured debt but above equity. Investors in these notes are taking on a specific level of risk for a fixed coupon payment.
Key Highlights
- 1State Street Corporation issued $850 million of 2.200% Senior Subordinated Notes due 2031.
- 2The offering was a public offering conducted under a Form S-3 registration statement.
- 3Net proceeds expected from the offering are approximately $842.4 million.
- 4The notes are senior subordinated debt, indicating their position in the company's capital structure.
- 5The issuance was underwritten by a syndicate led by BofA Securities, Inc., CastleOak Securities, L.P., Goldman Sachs & Co. LLC, and Siebert Williams Shank & Co., LLC.
- 6The offering provides State Street with long-term financing and enhances its liquidity.