01—Abstract
Summary
Summary of the 8-K filed July 24, 2024. Cited figures are marked; the original filing is the authoritative source.
State Street Corporation (STT) announced the successful public offering of 850,000 depositary shares, each representing a 1/100th ownership interest in its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J.
This offering generated approximately $842.2 milliona in net proceeds for the company after deducting underwriting discounts and expenses. The issuance of these depositary shares, with a liquidation preference of $100,000 per share, strengthens State Street's capital base and provides financial flexibility. The Series J Preferred Stock was formally established through the filing of Articles of Amendment in Massachusetts.
The transaction was executed under a registration statement previously filed with the SEC and was facilitated by an underwriting agreement with Goldman Sachs & Co. LLC and UBS Securities LLC. Investors in these depositary shares will receive a fixed rate reset dividend, subject to reset at specified intervals, and the non-cumulative nature means missed dividend payments are not carried forward. This offering is a strategic move by State Street to manage its capital structure and enhance its financial resilience.
02—Key points
Key Highlights
- State Street successfully raised approximately $842.2 million in net proceeds from the public offering of 850,000 depositary shares representing Series J Preferred Stock.
- The offering involved 850,000 depositary shares, each representing a 1/100th interest in a share of Series J Preferred Stock with a liquidation preference of $100,000 per share.
- The Series J Preferred Stock is a Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, indicating its dividend structure and perpetual nature.
- The offering was conducted through a public offering under a previously filed Form S-3 registration statement.
- The transaction was underwritten by Goldman Sachs & Co. LLC and UBS Securities LLC.
- Proceeds will enhance State Street's capital structure and provide financial flexibility.
- The company has entered into a Deposit Agreement with Equiniti Trust Company, LLC as the depositary.
03—Questions
Frequently Asked Questions
What did State Street announce on July 24, 2024?
State Street announced the completion of a public offering of 850,000 depositary shares, representing its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J. This offering is expected to generate approximately $842.2 million in net proceeds for the company.
What are the key features of the Series J Preferred Stock?
The Series J Preferred Stock is perpetual, non-cumulative, and has a fixed rate that resets periodically. Each depositary share represents a 1/100th ownership interest in a share of this preferred stock, with a liquidation preference of $100,000 per share (or $1,000 per depositary share).
How will the net proceeds from this offering be used?
The filing states that State Street expects to receive net proceeds of approximately $842.2 million. While specific use of proceeds is not detailed in this 8-K, such capital raises are typically used to strengthen the company's capital base, fund general corporate purposes, or support strategic initiatives.
Who were the underwriters for this offering?
The offering was made pursuant to an underwriting agreement with Goldman Sachs & Co. LLC and UBS Securities LLC, acting as representatives of the underwriters.
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