Summary
State Street Corporation (STT) announced on February 7, 2022, the issuance of $1.5 billion in aggregate principal amount of fixed-to-floating rate senior notes through a public offering. This offering includes tranches due in 2026, 2028, and 2033, totaling $300 million, $650 million, and $550 million, respectively. The issuance was conducted under a registration statement filed with the SEC and governed by an established indenture with U.S. Bank National Association as trustee. Investors should note that State Street anticipates receiving approximately $1.492 billion in net proceeds from this offering, after accounting for expenses and underwriting fees. This capital infusion suggests a strategic move by State Street to strengthen its financial position and potentially fund ongoing operations, strategic initiatives, or meet regulatory capital requirements. The fixed-to-floating rate structure of these notes means they will initially bear a fixed interest rate, which will then convert to a floating rate at a future, unspecified point in time.
Key Highlights
- 1State Street issued a total of $1.5 billion in senior notes across three tranches: 2026 ($300M), 2028 ($650M), and 2033 ($550M).
- 2The notes are structured as fixed-to-floating rate senior notes.
- 3The offering was conducted via a public offering under a registered Form S-3.
- 4Net proceeds from the offering are expected to be approximately $1.492 billion.
- 5The issuance was underwritten by a syndicate including Goldman Sachs & Co. LLC, Credit Suisse Securities (USA) LLC, Loop Capital Markets LLC, and Siebert Williams Shank & Co., LLC.
- 6The notes were issued pursuant to an established Indenture with U.S. Bank National Association as trustee.
- 7Legal opinions regarding the issuance of the notes have been provided by Wilmer Cutler Pickering Hale and Dorr LLP.