Summary
State Street Corporation (STT) has announced the successful completion of a public offering of 750,000 depositary shares representing an interest in its Series K Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock. The offering, which closed on February 6, 2025, is expected to generate approximately $743.1 million in net proceeds for the company after deducting underwriting discounts and expenses. This capital raise is a strategic move to strengthen State Street's financial position and support its ongoing operations and strategic initiatives.
Key Highlights
- 1State Street successfully sold 750,000 depositary shares of its Series K Preferred Stock.
- 2The offering is expected to yield approximately $743.1 million in net proceeds.
- 3The Series K Preferred Stock is a fixed-rate reset non-cumulative perpetual preferred stock.
- 4The offering was conducted through a public offering under a Form S-3 registration statement.
- 5BofA Securities, Inc. and Morgan Stanley & Co. LLC acted as underwriters.
- 6A deposit agreement has been established with Equiniti Trust Company, LLC as the depositary.
- 7The company received a legal opinion from Wilmer Cutler Pickering Hale and Dorr LLP regarding the issuance.
Frequently Asked Questions
The primary purpose of this offering was to raise capital. State Street expects to receive net proceeds of approximately $743.1 million, which can be used to strengthen its capital base and support its business operations and strategic goals.
The Series K Preferred Stock is a fixed-rate reset, non-cumulative, perpetual preferred stock with a liquidation preference of $100,000 per share. The depositary shares each represent a 1/100th ownership interest in a share of this preferred stock.
By raising approximately $743.1 million in net proceeds, this offering enhances State Street's capital structure, providing it with greater financial flexibility and reinforcing its balance sheet. This can support its regulatory capital requirements and future growth opportunities.
The key parties involved include State Street Corporation (the issuer), BofA Securities, Inc. and Morgan Stanley & Co. LLC (the underwriters), Equiniti Trust Company, LLC (the depositary), and Wilmer Cutler Pickering Hale and Dorr LLP (legal counsel).