By Wendy Van Sickle
Columbus, Ohio, Jan. 24 – State Street Corp. priced a $1.5 billion offering of $1,000-par series I fixed-to-floating rate non-cumulative perpetual preferred stock (Baa1/BBB/BBB+) at par with an initial dividend of 6.7% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
There is no greenshoe.
BofA Securities, Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are the joint bookrunners.
The preferreds are redeemable on or after March 15, 2029 at par. Prior to that, they are redeemable upon the occurrence of a regulatory capital treatment event.
If the preferreds are not redeemed by March 15, 2029, the dividend will convert to Treasuries plus 261.3 basis points.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, investments in or loans to subsidiaries, refinancing outstanding debt, refinancing capital securities, share repurchases, dividends, funding potential future acquisitions and satisfaction of other obligations.
The bank holding company for State Street Bank and Trust Co. is based in Boston.
| Issuer: | State Street Corp.
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| Amount: | $1.5 billion, or 1.5 million shares
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| Issue: | Series I fixed-to-floating rate non-cumulative perpetual preferred stock
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| Maturity: | Perpetual
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| Bookrunners: | BofA Securities, Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC
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| Co-managers: | Loop Capital Markets LLC and Samuel A. Ramirez & Co., Inc.
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| Dividend: | 6.7% until March 15, 2029, then converts to floating rate of Treasuries plus 261.3 bps
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| Price: | Par of $1,000
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| Call: | On or after March 15, 2029 at par; prior to that, upon the occurrence of a regulatory capital treatment event
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| Pricing date: | Jan. 24
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| Settlement date: | Jan. 31
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| Ratings: | Moody’s: Baa1 (expected)
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| S&P: BBB (expected)
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| Fitch: BBB+ (expected)
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| Distribution: | SEC registered
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| Cusip: | 857477CH4
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