Summary
State Street Corporation (STT) announced the issuance of $1 billion in aggregate principal amount of senior notes on November 4, 2022. This offering comprises $500 million of Fixed-to-Floating Rate Senior Notes due 2026 (Sustainability Notes) and $500 million of Fixed-to-Floating Rate Senior Notes due 2028. The net proceeds from this offering are expected to be approximately $995.5 million after deducting expenses and underwriting fees. Notably, State Street intends to allocate an amount equal to the net proceeds from the Sustainability Notes, estimated at $498.0 million, to finance or refinance eligible green or social projects. This highlights the company's commitment to environmental and social initiatives alongside its capital-raising activities. The issuance was conducted under a registration statement and involved an underwriting agreement with several established financial institutions.
Key Highlights
- 1State Street issued $1 billion in senior notes, split equally between 2026 (Sustainability Notes) and 2028 maturities.
- 2The offering raised approximately $995.5 million in net proceeds after expenses.
- 3The Sustainability Notes, totaling $500 million, will have proceeds allocated to eligible green or social projects.
- 4The notes are structured as Fixed-to-Floating Rate Senior Notes.
- 5The issuance was conducted through a public offering under a Form S-3 registration statement.
- 6Key underwriters included Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, and Academy Securities, Inc.