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STATE STREET CORP 8-K Report, Rights Modification (Jan 30, 2024)

Filed January 30, 2024For Securities:STTSTT-PG

Summary

State Street Corporation (STT) has filed an 8-K detailing an underwritten public offering of 1,500,000 depositary shares. Each depositary share represents a 1/100th ownership interest in a newly created series of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I. The offering, priced at $1,000 per depositary share, is expected to generate approximately $1.481 billion in net proceeds for State Street after deducting underwriting discounts and expenses. This issuance is a strategic move by State Street to bolster its capital position. The newly created Preferred Stock, Series I, has a liquidation preference of $100,000 per share. The company has entered into an underwriting agreement with BofA Securities, Inc., Deutsche Bank Securities Inc., and Goldman Sachs & Co. LLC, acting as representatives for the underwriters. This filing also incorporates amendments to State Street's Articles of Organization to establish the terms of this preferred stock.

Key Highlights

  • 1State Street is conducting an underwritten public offering of 1,500,000 depositary shares.
  • 2Each depositary share represents a 1/100th interest in newly issued Preferred Stock, Series I.
  • 3The offering is expected to raise approximately $1.481 billion in net proceeds.
  • 4The net proceeds will be used to strengthen State Street's capital.
  • 5The new Preferred Stock, Series I, is fixed rate reset, non-cumulative, and perpetual with a $100,000 liquidation preference per share.
  • 6The offering is priced at $1,000 per depositary share.
  • 7Key underwriters include BofA Securities, Deutsche Bank Securities, and Goldman Sachs.

Frequently Asked Questions

This 8-K filing primarily announces and provides details regarding State Street Corporation's underwritten public offering of 1,500,000 depositary shares, representing an interest in its newly established Preferred Stock, Series I, and the expected net proceeds from this issuance.

State Street expects to receive net proceeds of approximately $1.481 billion from the offering, after accounting for underwriting discounts and estimated offering expenses.

The Preferred Stock, Series I, is described as fixed rate reset, non-cumulative, and perpetual. Each share has a liquidation preference of $100,000. The depositary shares offered represent a fractional ownership interest in this preferred stock.

The lead underwriters, acting as representatives of the underwriters, are BofA Securities, Inc., Deutsche Bank Securities Inc., and Goldman Sachs & Co. LLC.