Minority Business Enterprises Underwrite the Majority of State Street 2031 Senior Subordinated Offering
March 04 2021 - 3:05PM
Business Wire
State Street Corporation (NYSE:STT) today announced that it has
issued $850 million senior subordinated bonds at a coupon of 2.20
percent. The offering, which closed yesterday, was structured
utilizing an underwriting syndicate substantially made up of Black-
and Latinx-Owned Business Enterprises as bookrunners and
co-managers.
The full syndicate included BofA Securities, Inc., CastleOak
Securities, L.P., Goldman Sachs & Co. LLC, and Siebert Williams
Shank & Co., LLC as lead bookrunners. Blaylock Van, LLC, Great
Pacific Securities, Loop Capital Markets LLC, and Samuel A. Ramirez
& Company also acted as co-managers. Over 50% of the bonds were
underwritten by Black-owned or Latinx-owned firms.
“This deal syndicate demonstrates our commitment to expanding
our relationships and increasing our financing partnerships with
Minority, Women and Veteran Business Enterprises,” said Eric Aboaf,
chief financial officer of State Street Corporation. “We need to
hold ourselves accountable for broadening representation across all
areas of our business, including how we structure our capital
markets activities. We had extremely positive feedback in this
offering, which was oversubscribed, which also speaks to the
interest from the market.”
“We commend State Street on its intentional demonstration of its
commitment to diversity, through the substantive inclusion of two
minority-owned investment banks as active book running managers on
the company’s extremely successful debt offering,” commented
Christopher J. Williams, Chairman of Siebert Williams Shank &
Co., LLC . “In addition to enabling us to increase the resources
committed to growing our business capabilities, the impact of State
Street providing diverse firms with this meaningful opportunity is
to enable us to increase employment, internship opportunities, and
our broad support of diverse communities.”
“Working in tandem with the other managers, we were able to
upsize the transaction and tighten pricing, resulting in the lowest
coupon and spread across all US bank subordinated offerings since
2008,” David Jones, President & CEO of CastleOak Securities,
L.P. added. “We are incredibly proud to have been a bookrunner on
such a well-executed transaction.”
State Street was able to tighten pricing on this offering by 27
basis points from initial price talk and had a final orderbook that
was 2.6 times oversubscribed.
Learn more about State Street’s commitment to increasing racial
equity in the capital markets and broader financial services
industry as part of its 10 Actions to Address Racism and
Inequality.
About State Street
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 $38.8 trillion in assets
under custody and/or administration and $3.5 trillion* in assets
under management as of December 31, 2020, State Street operates
globally in more than 100 geographic markets and employs
approximately 39,000 worldwide. For more information, visit State
Street's website at www.statestreet.com.
*Assets under management as of December 31, 2020 includes
approximately $75 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.
© 2021 State Street Corporation - All Rights Reserved
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Ed Patterson epatterson@statestreet.com +1 404 213 3106
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