Summary
State Street Corporation (STT) has filed an 8-K reporting on two key events: the creation and amendment of its Articles of Organization to establish Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series K, and its intention to issue and sell Depositary Shares representing ownership in this preferred stock. This move signifies a strategic capital raise, with the company entering into an underwriting agreement for the sale of 750,000 depositary shares at $1,000 per share, aiming to generate approximately $743.1 million in net proceeds after expenses. The issuance of this preferred stock and the related depositary shares provides State Street with additional capital, potentially strengthening its balance sheet and supporting its ongoing business operations and strategic initiatives. The fixed-rate, non-cumulative nature of the preferred stock implies specific dividend payment characteristics and priority in liquidation. Investors should note that this preferred stock is being offered in the form of depositary shares, which are equity instruments representing an interest in the underlying preferred stock, and are subject to the terms outlined in a forthcoming deposit agreement.
Key Highlights
- 1State Street established a new class of stock: Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series K.
- 2The company is issuing 750,000 Depositary Shares, each representing a 1/100th ownership interest in the new Series K Preferred Stock.
- 3An Underwriting Agreement was executed with BofA Securities, Inc. and Morgan Stanley & Co. LLC for the public offering.
- 4The offering is priced at $1,000 per Depositary Share.
- 5State Street anticipates net proceeds of approximately $743.1 million from the offering after deducting underwriting discounts and expenses.
- 6A deposit agreement with Equiniti Trust Company, LLC will govern the depositary shares, to be entered into at a later date.