01—Abstract
Summary
Summary of the 8-K filed December 20, 2024. Cited figures are marked; the original filing is the authoritative source.
State Street Corporation (STT) has announced the redemption of its 4.857%a Fixed-to-Floating Rate Senior Notes due 2026 (the "January Notes") and its 1.746% Fixed-to-Floating Rate Senior Notes due 2026 (the "February Notes").
The January Notes, with an aggregate principal amount of $500 millionb, will be redeemed on January 27, 2025, at 100% of their principal plus accrued interest. The February Notes, totaling $300 million in principal, will be redeemed on February 6, 2025, also at 100% of their principal plus accrued interest. This action indicates a proactive approach by State Street to manage its debt obligations.
The company intends to use existing cash reserves to fund these redemptions, suggesting a solid liquidity position. Investors holding these specific notes should be aware of the redemption dates and terms, as interest will cease to accrue on the notes after their respective redemption dates.
02—Key points
Key Highlights
- State Street Corporation is redeeming its $500 million aggregate principal amount of 4.857% Senior Notes due 2026 on January 27, 2025.
- The company is also redeeming its $300 million aggregate principal amount of 1.746% Senior Notes due 2026 on February 6, 2025.
- Both note issuances will be redeemed at par (100% of the principal amount) plus accrued and unpaid interest.
- Interest on these notes will cease to accrue from their respective redemption dates.
- State Street intends to fund these redemptions using cash on hand.
- The company is managing its debt structure by retiring these specific senior notes.
03—Questions
Frequently Asked Questions
What is happening to the State Street Senior Notes due 2026?
State Street Corporation is calling for early redemption of two series of its Senior Notes due 2026: the $500 million of 4.857% notes and the $300 million of 1.746% notes. The redemption dates are January 27, 2025, for the 4.857% notes and February 6, 2025, for the 1.746% notes.
At what price will the notes be redeemed?
Both series of notes will be redeemed at 100% of their principal amount, plus any accrued and unpaid interest up to, but not including, the respective redemption dates.
How will State Street fund these redemptions?
State Street intends to use its existing cash on hand to pay for the aggregate redemption price of both the January Notes and the February Notes.
What is the impact on investors holding these notes?
Investors holding these specific notes will receive the principal amount plus accrued interest on the redemption dates. They will no longer receive interest payments after the respective redemption dates, as interest will cease to accrue.
04—Continue