Summary
State Street Corporation (STT) has filed an 8-K detailing the creation and public offering of new preferred stock. Specifically, the company amended its Articles of Organization to establish the terms of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L. This newly created preferred stock will be offered to the public through depositary shares, with each depositary share representing a 1/100th ownership interest in a share of the Series L Preferred Stock. The offering involves 500,000 depositary shares, priced at $1,000 per share, with State Street expecting to raise approximately $495.7 million in net proceeds after deducting underwriting discounts and expenses. This strategic move indicates a focus on strengthening the company's capital structure or funding specific initiatives through equity issuance. Investors should note the perpetual nature of the preferred stock and its fixed rate reset feature, which will impact future dividend payments.
Key Highlights
- 1State Street Corporation filed an 8-K to announce the creation and public offering of its Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L.
- 2The company amended its Articles of Organization to define the terms, preferences, and rights of the new Series L Preferred Stock.
- 3State Street is offering 500,000 depositary shares, each representing a 1/100th interest in a share of the Series L Preferred Stock.
- 4The public offering price for each depositary share is set at $1,000.
- 5State Street anticipates receiving net proceeds of approximately $495.7 million from the offering after fees and expenses.
- 6The offering is being conducted under an underwriting agreement with Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC.
- 7The new preferred stock is perpetual and non-cumulative with a fixed rate reset feature.