Summary
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 million 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.
Key Highlights
- 1State Street successfully raised approximately $842.2 million in net proceeds from the public offering of 850,000 depositary shares representing Series J Preferred Stock.
- 2The 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.
- 3The Series J Preferred Stock is a Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, indicating its dividend structure and perpetual nature.
- 4The offering was conducted through a public offering under a previously filed Form S-3 registration statement.
- 5The transaction was underwritten by Goldman Sachs & Co. LLC and UBS Securities LLC.
- 6Proceeds will enhance State Street's capital structure and provide financial flexibility.
- 7The company has entered into a Deposit Agreement with Equiniti Trust Company, LLC as the depositary.