Summary
State Street Corporation (STT) has filed an 8-K report detailing the successful completion of a public offering and sale of 1,500,000 depositary shares. These shares represent ownership in its newly established Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series I. The offering generated approximately $1.481 billion in net proceeds for State Street after deducting underwriting discounts and expenses. This capital raise is a significant event for investors, as it enhances the company's capital base. The preferred stock, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), carries fixed rate reset non-cumulative perpetual characteristics. The details of the offering, including the underwriting agreement and the establishment of the preferred stock series, were finalized in late January 2024.
Key Highlights
- 1State Street successfully completed a public offering of 1,500,000 depositary shares representing Series I Preferred Stock.
- 2The company expects to receive approximately $1.481 billion in net proceeds from the offering.
- 3The Series I Preferred Stock is a new class of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock.
- 4Each depositary share represents a 1/100th ownership interest in a share of preferred stock with a $100,000 liquidation preference per share.
- 5The offering was conducted under a registration statement on Form S-3.
- 6Key agreements related to the offering, including the underwriting agreement and deposit agreement, have been filed.
- 7The net proceeds will bolster State Street's capital position.