01—Abstract
Summary
Summary of the 8-K filed January 31, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 $1,000b 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.
02—Key points
Key Highlights
- State Street successfully completed a public offering of 1,500,000 depositary shares representing Series I Preferred Stock.
- The company expects to receive approximately $1.481 billion in net proceeds from the offering.
- The Series I Preferred Stock is a new class of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock.
- Each depositary share represents a 1/100th ownership interest in a share of preferred stock with a $100,000 liquidation preference per share.
- The offering was conducted under a registration statement on Form S-3.
- Key agreements related to the offering, including the underwriting agreement and deposit agreement, have been filed.
- The net proceeds will bolster State Street's capital position.
03—Questions
Frequently Asked Questions
What is the purpose of this offering?
The primary purpose of this offering is to raise capital, thereby strengthening State Street's financial position and capital base. The net proceeds of approximately $1.481 billion will contribute to the company's overall financial resources.
What are the key features of the Series I Preferred Stock?
The Series I Preferred Stock is a Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock. Each depositary share represents a 1/100th ownership interest, with a liquidation preference of $100,000 per share of preferred stock ($1,000 per depositary share). The 'fixed rate reset' feature implies its dividend rate will reset periodically, and 'non-cumulative' means missed dividend payments are not made up later.
How much capital did State Street raise?
State Street expects to receive approximately $1.481 billion in net proceeds from the sale of the depositary shares, after accounting for underwriting discounts and estimated offering expenses.
Where can I find more detailed information about this offering?
Detailed information can be found in the 8-K filing itself, specifically in Item 8.01 (Other Events). The filing also references and incorporates by reference several exhibits, including the Underwriting Agreement, Articles of Amendment for the preferred stock, the Deposit Agreement, and the form of the preferred stock certificate.
04—Continue