State Street Corporation Announces Issuance of Preferred Stock

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07/24/2024 - 05:00 PM

BOSTON--(BUSINESS WIRE)-- State Street Corporation (“State Street”) (NYSE: STT) announced today that it has issued $850 million of depositary shares, each representing a 1/100^th ownership interest in a share of its 6.700% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series J (the “Series J Preferred Stock”), with a liquidation preference of $100,000 per share.

The offering, which closed today, was structured in keeping with State Street’s ongoing inclusion, diversity, and equity efforts, with Academy Securities, Inc., a veteran-owned and MBE-certified investment bank, and Siebert Williams Shank & Co., LLC, a minority and women owned investment bank, each acting as co-managers on the transaction, representing State Street’s thirteenth consecutive offering engagement with similarly designated firms. The underwriting syndicate also included Goldman Sachs & Co. LLC and UBS Securities LLC each acting as joint book-running managers.

Dividends on the Series J Preferred Stock will be payable on the liquidation preference amount, on a non-cumulative basis, quarterly in arrears on the 15^th day of March, June, September and December of each year, commencing on December 15, 2024. Dividends will accrue (i) from the date of issuance to, but excluding, September 15, 2029 at a fixed rate of 6.700% per annum and (ii) from and including September 15, 2029, for each five-year reset period, at a rate per annum equal to the five-year U.S. Treasury rate as of the most recent reset dividend determination date, plus a spread of 2.628%. Dividend payments on the Series J Preferred Stock will only be payable when, as and if declared by State Street’s board of directors, or any duly authorized committee of its board of directors. State Street may redeem the Series J Preferred Stock (i) in whole or in part on any dividend payment date on or after September 15, 2029, subject to regulatory approval, and (ii) in whole but not in part within 90 days following the occurrence of a regulatory capital treatment event.

About State Street Corporation

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $44.3 trillion in assets under custody and/or administration and $4.4 trillion* in assets under management as of June 30, 2024, State Street operates globally in more than 100 geographic markets and employs approximately 53,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of June 30, 2024 includes approximately $69 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.