8-KOther EventsExhibits & Filings

STATE STREET CORP 8-K Report, Corporate Update (Feb 7, 2022)

Filed February 7, 2022For Securities:STTSTT-PG

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.

Frequently Asked Questions

State Street issued a total of $1.5 billion in aggregate principal amount of senior notes, comprised of $300 million due in 2026, $650 million due in 2028, and $550 million due in 2033.

State Street expects to receive approximately $1.492 billion in net proceeds from the offering, after deducting estimated expenses and underwriting discounts and commissions.

The senior notes are structured as 'fixed-to-floating rate' notes. This means they will initially pay a fixed interest rate, but at some point in the future, the interest rate will convert to a floating rate, typically tied to a benchmark like SOFR.

The filing does not explicitly state the specific use of proceeds. However, the capital raised can typically be used for general corporate purposes, including funding strategic initiatives, acquisitions, capital expenditures, or strengthening regulatory capital.