The Charles Schwab Corporation (“CSC”) today announced the
commencement of offers to exchange (the “exchange offers”) any and
all validly tendered (and not validly withdrawn) and accepted notes
of the four series of notes described in the table below
(collectively, the “Old Notes”) issued by TD Ameritrade Holding
Corporation (“TDA Holding”) for notes to be issued by CSC as
described in the table below (collectively, the “CSC Notes”). A
registration statement on Form S-4 relating to the issuance of the
CSC Notes was filed with the Securities and Exchange Commission
(“SEC”) on August 24, 2021 (the “Registration Statement”) but has
not yet been declared effective. Copies of the prospectus dated
August 24, 2021 (the “Prospectus”), which forms a part of the
Registration Statement, and the Letter of Transmittal and Consent
(the “Letter of Transmittal”) are available to holders through the
exchange agent and information agent, Global Bondholder Services
Corporation, by calling (866) 470-3900 (toll-free) or (212)
430-3774 (for banks and brokers) or by emailing
contact@gbsc-usa.com.
Title of Series of Old
Notes
CUSIP/ISIN No.
Aggregate Principal
Amount
Title of Series of CSC Notes
to be issued by CSC
Exchange Consideration
(1)(2)
Early Participation Premium
(1)(2)
Total Consideration
(1)(2)(3)
CSC Notes (Principal
Amount)
Cash
CSC Notes (Principal
Amount)
CSC Notes (Principal
Amount)
Cash
3.750% Senior Notes due 2024
87236YAH1 / US87236YAH18
$400,000,000
3.750% Senior Notes due 2024
$970
$1.00
$30
$1,000
$1.00
3.625% Senior Notes due 2025
87236YAD0 / US87236YAD04
$500,000,000
3.625% Senior Notes due 2025
$970
$1.00
$30
$1,000
$1.00
3.300% Senior Notes due 2027
87236YAF5 / US87236YAF51
$800,000,000
3.300% Senior Notes due 2027
$970
$1.00
$30
$1,000
$1.00
2.750% Senior Notes due 2029
87236YAJ7 / US87236YAJ73
$500,000,000
2.750% Senior Notes due 2029
$970
$1.00
$30
$1,000
$1.00
(1)
Consideration per $1,000 principal amount
of Old Notes validly tendered and accepted for exchange, subject to
any rounding as described herein.
(2)
The term “CSC Notes” in this column
refers, in each case, to the series of CSC Notes corresponding to
the series of Old Notes of like tenor and coupon.
(3)
Includes the Early Participation Premium
(as defined below) for Old Notes validly tendered prior to the
Early Participation Date described below and not validly
withdrawn.
In connection with the exchange offers, CSC is also soliciting
consents (the “consent solicitations”) from holders of the Old
Notes (on behalf of TDA Holding) to certain proposed amendments to
the corresponding indenture and to supplemental indentures pursuant
to which such Old Notes were issued (the “TDA Indentures”) which
amendments will modify or delete certain restrictive terms. If the
proposed amendments become effective with respect to any series of
Old Notes, the amendments will apply to all Old Notes of such
series not tendered in the applicable exchange offer.
The exchange offers and consent solicitations commenced on
August 24, 2021 and expire at 8:00 a.m., New York City time, on
September 22, 2021, unless extended or earlier terminated (the
“Expiration Date”). In exchange for each $1,000 principal amount of
Old Notes that is validly tendered prior to 5:00 p.m., New York
City time, on September 7, 2021, unless extended (such date and
time, as it may be extended, the “Early Participation Date”), and
not validly withdrawn, holders of such Old Notes will be eligible
to receive the total consideration set out in the table above (the
“Total Consideration”), which consists of $1,000 principal amount
of the corresponding CSC Notes and $1.00. The Total Consideration
includes an early participation premium set out in the table above
(the “Early Participation Premium”), which consists of $30
principal amount of the corresponding series of CSC Notes per
$1,000 principal amount of Old Notes. In exchange for each $1,000
principal amount of Old Notes that is validly tendered after the
Early Participation Date but prior to the Expiration Date and not
validly withdrawn, holders of such Old Notes will be eligible to
receive only the exchange consideration set out in the table above
(the “Exchange Consideration”). The consummation of each exchange
offer is subject to, and conditional upon, the satisfaction or,
where permitted, waiver of the conditions in the Registration
Statement. CSC may, at its option, waive any such conditions except
for the condition that the Registration Statement of which the
Prospectus forms a part has been declared effective by the SEC. All
conditions to the exchange offers must be satisfied or, where
permitted, waived, at or by the Expiration Date.
The CSC Notes will be unsecured and unsubordinated obligations
of CSC and will rank equally with all other unsecured and
unsubordinated indebtedness of CSC issued from time to time.
Each CSC Note issued in exchange for an Old Note will have an
interest rate, interest payment dates and maturity that are the
same as the interest rate, the interest payment dates and maturity
of the tendered Old Note, as well as substantively the same
optional redemption provisions. No accrued but unpaid interest will
be paid on the Old Notes in connection with the exchange offers.
However, interest on the applicable CSC Note will accrue from and
including the most recent interest payment date of the tendered Old
Note. Subject to the minimum denominations as described in the
Registration Statement, the principal amount of each CSC Note will
be rounded down, if necessary, to the nearest whole multiple of
$1,000, and CSC will pay a cash rounding amount equal to the
remaining portion, if any, of the exchange price of such Old Note,
plus accrued and unpaid interest with respect to such portion of
the Old Notes not exchanged.
Questions concerning the terms of the exchange offers or the
consent solicitations for the Old Notes should be directed to the
joint lead dealer managers and joint lead solicitation agents:
Credit Suisse 11 Madison
Avenue New York, New York 10010 Toll Free: (888) 820-1653 Collect:
(212) 538-2147 Attn: Liability Management Group
Citigroup 388 Greenwich
Street, Trading 4th Floor New York, New York 10013 Toll Free: (800)
558-3745 Collect: (212) 723-6106 Attn: Liability Management
Group
Questions concerning tender procedures for the Old Notes and
requests for additional copies of the Prospectus and the Letter of
Transmittal should be directed to the exchange agent and
information agent:
Global Bondholder Services Corporation
By Facsimile (Eligible Institutions Only): (212) 430-3775
Attention: Corporate Actions
By Mail or Hand: 65 Broadway, Suite 404 New
York, New York 10006 Attention: Corporate Actions
Banks and Brokers Call Collect: (212) 430-3774
All Others, Please Call Toll Free: (866) 470-3900
By E-mail: contact@gbsc-usa.com
The exchange offers and consent solicitations are being made
pursuant to the terms and conditions set forth in the Prospectus
and the related Letter of Transmittal. Tenders of Old Notes in
connection with any of the exchange offers may be withdrawn at any
time prior to the Expiration Date of the applicable exchange offer.
Following the Expiration Date, tenders of Old Notes may not be
validly withdrawn unless CSC is otherwise required by law to permit
withdrawal. Consents to the proposed amendments may be revoked at
any time prior to 5:00 p.m., New York City time, on September 7,
2021, unless extended (the “Consent Revocation Deadline”), but may
not be revoked at any time thereafter. Consents may be revoked only
by validly withdrawing the associated tendered Old Notes. A valid
withdrawal of tendered Old Notes prior to the Consent Revocation
Deadline will be deemed to be a concurrent revocation of the
related consent to the proposed amendments to the applicable TDA
Indentures.
Subject to applicable law, each exchange offer and each consent
solicitation is being made independently of the other exchange
offers and consent solicitations, and CSC reserves the right to
terminate, withdraw or amend each exchange offer and each consent
solicitation independently of the other exchange offers and consent
solicitations at any time and from time to time, as described in
the Registration Statement.
This press release is not an offer to sell or a solicitation of
an offer to buy any of the securities described herein and is not a
solicitation of the related consents. The exchange offers and
consent solicitations may be made solely pursuant to the terms and
conditions of the Prospectus, the Letter of Transmittal and the
other related materials. The exchange offers and consent
solicitations are not being made in any state or jurisdiction in
which such offers would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.
In order to participate in any exchange offer and consent
solicitation for Old Notes, holders of the Old Notes resident in
Canada are required to complete, sign and submit to the exchange
agent the related Canadian Certification Form.
This press release, the Prospectus and any other document or
materials relating to the issue of the CSC Notes offered hereby is
not a Prospectus for the purposes of Regulation (EU) 2017/1129 (the
“Prospectus Regulation”).The communication of this press release,
the Prospectus and any other document or materials relating to the
issue of the CSC Notes offered hereby is not being made, and such
documents and/or materials have not been approved, by an authorized
person for the purposes of Section 21 of the United Kingdom’s
Financial Services and Markets Act 2000 (as amended, the “FSMA”).
Accordingly, such documents and materials are not being distributed
to, and must not be directed at, the general public in the United
Kingdom. The communication of such documents and/or materials is
only being made to those persons in the United Kingdom who have
professional experience in matters relating to investments and who
fall within the definition of investment professionals (as defined
in Article 19(5) of the Financial Services and Markets Act 2000
(Financial Promotion) Order 2005 (as amended, the “Order”)), or who
fall within Article 49(2)(a) to (d) of the Order (all such persons
together being referred to as “Relevant Persons”). In the United
Kingdom, the Prospectus and the CSC Notes offered thereby are only
available to, and any investment or investment activity to which
the Prospectus and any other document or materials relating to the
issue of the CSC Notes offered thereby relates, will be engaged in
only with, Relevant Persons. Any person in the United Kingdom that
is not a Relevant Person should not act or rely on the Prospectus
or any of its contents.
PROHIBITION OF SALES TO EEA RETAIL INVESTORS— The CSC
Notes are not intended to be offered, sold or otherwise made
available to and should not be offered, sold or otherwise made
available to any retail investor in the European Economic Area
(“EEA”) or in the United Kingdom (“UK”). For these purposes, a
retail investor means a person who is one (or more) of the
following: (i) a retail client as defined in point (11) of Article
4(1) of Directive (EU) 2014/65/EU (as amended, “MiFID II”), (ii) a
customer within the meaning of Directive (EU) 2016/97 (as amended,
the “Insurance Distribution Directive”), where that customer would
not qualify as a professional client as defined in point (10) of
Article 4(1) of MiFID II or (iii) a person that is not a qualified
investor as defined in the Prospectus Regulation. Consequently, no
key information document required by Regulation (EU) No. 1286/2014
(as amended, the “PRIIPs Regulation”) for offering or selling the
CSC Notes and otherwise making them available to retail investors
in the EEA or in the UK has been prepared and therefore offering or
selling the securities or otherwise making them available to a
retail investor in the EEA or in the UK may be unlawful under the
PRIIPs Regulation.
MiFID II PRODUCT GOVERNANCE/TARGET MARKET— Solely for the
purposes of each manufacturer’s product approval process, the
target market assessment in respect of the CSC Notes has led to the
conclusion that: (i) the target market for the CSC Notes is
eligible counterparties and professional clients only, each as
defined in MiFID II and (ii) all channels for distribution of the
CSC Notes to eligible counterparties and professional clients are
appropriate. Any person subsequently offering, selling or
recommending the CSC Notes (a “distributor”) should take into
consideration the manufacturers’ target market assessment; however,
a distributor subject to MiFID II is responsible for undertaking
its own target market assessment in respect of the CSC Notes (by
either adopting or refining the manufacturers’ target market
assessment) and determining appropriate distribution channels.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws. These forward-looking
statements include statements regarding CSC’s offers to exchange
and intended offering of CSC Notes. These forward-looking
statements are subject to risks and uncertainties, including the
risks disclosed in the Registration Statement and CSC’s filings
with the Securities and Exchange Commission, including CSC’s Annual
Report on Form 10-K for the year ended December 31, 2020 and
Quarterly Reports on Form 10-Q for the quarters ended March 31,
2021 and June 30, 2021.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210824005539/en/
MEDIA Mayura Hooper Charles Schwab Phone:
415-667-1525
INVESTORS/ANALYSTS Jeff Edwards Charles Schwab Phone:
415-667-1524
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