By Stephanie N. Rotondo
Phoenix, May 15 – State Street Corp. gave fresh details on its $750 million issuance of 5.25% $1,000-par series F fixed-to-floating rate noncumulative perpetual preferred stock (expected ratings: Baa2/BBB/BBB/A low) in an FWP filed with the Securities and Exchange Commission on Friday.
The deal priced Thursday.
Dividends will be fixed and payable semiannually through Sept. 15, 2020. On that date, the preferreds begin to float at Libor plus 359.7 basis points and will be payable quarterly.
Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co. and Wells Fargo Securities LLC are the joint bookrunners.
The preferreds become redeemable Sept. 15, 2020 at par plus accrued dividends. The company can also redeem the issue in whole upon a regulatory capital treatment event.
The securities will not be listed on any exchange.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, investments or loans to subsidiaries, refinancings, stock repurchases, dividend payments, future acquisitions or satisfaction of other obligations.
State Street is a Boston-based financial holding company.
| Issuer: | State Street Corp.
|
| Securities: | Series F fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $750 million
|
| Maturity: | Perpetual
|
| Bookrunners: | Morgan Stanley & Co. LLC, BofA Merrill Lynch, Goldman Sachs & Co., Wells Fargo Securities LLC
|
| Co-managers: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, UBS Securities LLC, Lloyds Securities Inc.
|
| Junior co-managers: | Mischler Financial Group, Inc., Samuel A. Ramirez & Co. Inc.
|
| Dividend: | Fixed at 5.25% until Sept. 15, 2020, then floating at Libor plus 359.7 bps
|
| Price: | Par of $1,000
|
| Yield: | 5.25%
|
| Call options: | On or after Sept. 15, 2020 or upon a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | May 14
|
| Settlement date: | May 21
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB
|
| DBRS: A low
|
| Cusip: | 857477AQ6
|
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