State Street Corp. Announces Additional Capital Action with Full Redemption of Non-Cumulative Perpetual Preferred Stock Serie...
November 06 2019 - 9:21AM
Business Wire
State Street Corporation (NYSE:STT) today announced that it will
redeem all of its outstanding shares of non-cumulative perpetual
preferred stock Series E (represented by depositary shares, each
representing a 1/4000th interest in a share of Series E preferred
stock)(the “Redemption”) on December 15, 2019 (the “Redemption
Date”), for cash at a redemption price of $100,000 per share
(equivalent to $25.00 per depositary share) plus all dividends that
have been declared but not paid up to but not including the
Redemption Date.
The Redemption is in addition to State Street’s original capital
plan, submitted as part of the 2019 Comprehensive Capital Analysis
and Review (CCAR) cycle and previously announced on June 27, 2019,
and has received approval from the Federal Reserve.
“We are pleased that State Street is able to continue to
optimize its capital structure through the full redemption of
approximately $750 million of preferred stock.” said Ron O’Hanley,
President and Chief Executive Officer. “The balance sheet
repositioning work that we undertook last year, coupled with our
strong capital position, has enabled us to further optimize our
capital mix, benefitting our shareholders.”
“This initial action on our capital stack is the result of
active balance sheet management under existing capital rules. We
will continue to review potential changes to leverage ratio rules
in order to further optimize our mix of capital,” added Eric Aboaf,
Chief Financial Officer.
State Street also announced that a cash dividend of $1,500.00
per share of Series E preferred stock (or approximately $0.3750 per
depositary share) has been declared for the period from September
16, 2019, the last dividend payment date, up to but not including
the Redemption Date, resulting in a total redemption price of
$101,500 per share of Series E preferred stock (or approximately
$25.3750 per depositary share). From and after the Redemption Date,
no shares of Series E preferred stock will be deemed outstanding
and the only remaining rights of holders of the Series E preferred
stock will be to receive payment of such redemption price. Because
the Redemption Date is not a business day, payment of such
redemption price will be made on December 16, 2019. There are
currently 7,500 shares of Series E preferred stock outstanding,
represented by 30,000,000 depositary shares.
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
$32.90 trillion in assets under custody and administration and
$2.95 trillion* in assets under management as of September 30,
2019, State Street operates globally in more than 100 geographic
markets and employs approximately 40,000 worldwide. For more
information, visit State Street's website at
www.statestreet.com.
* Assets under management include the assets of the SPDR® Gold
ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $44
billion as of September 30, 2019), for which State Street Global
Advisors Funds Distributors, LLC (SSGA FD) serves as marketing
agent; SSGA FD and State Street Global Advisors are affiliated.
Forward Looking Statements This press release contains
forward-looking statements that are not historical in nature. Such
forward-looking statements are subject to risks and uncertainties,
including competitive factors, government regulation and general
economic conditions and other risks and uncertainties described in
State Street’s periodic reports on file with the U.S. Securities
and Exchange Commission including the most recent Annual Report on
Form 10-K of State Street, as filed with the U.S. Securities and
Exchange Commission. In some cases, you can identify these
statements by forward-looking words, such as “anticipate,”
“believe,” “could,” “estimate,” “expect,” “forecast,” “intend,”
“looking ahead,” “may,” “plan,” “possible,” “potential,” “project,”
“should,” “will,” and similar words or expressions, the negative or
plural of such words or expressions and other comparable
terminology. Actual results may differ materially from anticipated
results. State Street does not undertake to update its
forward-looking statements or any of the information contained in
this press release, including to reflect future events or
circumstances.
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Ilene Fiszel Bieler +1 617-664-3477 Marc Hazelton +1
617-513-9439
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