Summary
State Street Corporation (STT) has filed an 8-K report detailing amendments to its Articles of Organization to establish Series J Preferred Stock and the subsequent issuance of Depositary Shares representing ownership in this preferred stock. This move is designed to raise significant capital, with the company expecting to receive approximately $842.2 million in net proceeds from the offering of 850,000 depositary shares, each priced at $1,000. These shares represent a 1/100th interest in the newly created Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J, which has a liquidation preference of $100,000 per share. The filing also includes the Underwriting Agreement with Goldman Sachs & Co. LLC and UBS Securities LLC, outlining the terms of the public offering. This strategic capital raise suggests State Street is either bolstering its capital base for regulatory requirements, funding strategic initiatives, or enhancing its financial flexibility. Investors should note that the preferred stock is non-cumulative, meaning missed dividend payments are not carried forward.
Key Highlights
- 1State Street is issuing 850,000 depositary shares, each representing a 1/100th interest in Series J Preferred Stock.
- 2The company expects to raise approximately $842.2 million in net proceeds from this offering.
- 3The depositary shares are priced at $1,000 per share.
- 4A new series of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock (Series J) has been established.
- 5The Series J Preferred Stock has a liquidation preference of $100,000 per share.
- 6An Underwriting Agreement was signed with Goldman Sachs & Co. LLC and UBS Securities LLC for the offering.