State Street Corporation to Redeem $500M of Preferred Stock in the Third Quarter of 2024






State Street (NYSE:STT) has announced plans to redeem $500 million of its non-cumulative perpetual preferred stock, Series H, on September 16, 2024. This redemption covers all 5,000 outstanding shares, represented by 500,000 depositary shares. The redemption price is set at $100,000 per share (or $1,000 per depositary share), plus any declared but unpaid dividends up to the redemption date.

Additionally, a cash dividend of $2,036.16 per share ($20.361600 per depositary share) has been declared for the period from June 18, 2024, to the redemption date. This dividend will be paid separately to shareholders of record as of September 3, 2024. After the redemption, no Series H Preferred Stock shares will remain outstanding.

State Street (NYSE:STT) ha annunciato piani per riscattare 500 milioni di dollari delle sue azioni privilegiate perpetue non cumulative, Serie H, il 16 settembre 2024. Questo riscatto riguarda tutte e 5.000 azioni in circolazione, rappresentate da 500.000 azioni di deposito. Il prezzo di riscatto è fissato a 100.000 dollari per azione (o 1.000 dollari per azione di deposito), più eventuali dividendi dichiarati ma non pagati fino alla data di riscatto.

Inoltre, è stato dichiarato un dividendo in contante di 2.036,16 dollari per azione (20,361600 dollari per azione di deposito) per il periodo dal 18 giugno 2024 fino alla data di riscatto. Questo dividendo sarà pagato separatamente agli azionisti registrati al 3 settembre 2024. Dopo il riscatto, non resteranno azioni della Serie H di azioni privilegiate in circolazione.

State Street (NYSE:STT) ha anunciado planes para redimir 500 millones de dólares de su acción preferente perpetua no acumulativa, Serie H, el 16 de septiembre de 2024. Esta redención cubre todas las 5.000 acciones en circulación, representadas por 500.000 acciones de depósito. El precio de redención está fijado en 100.000 dólares por acción (o 1.000 dólares por acción de depósito), más cualquier dividendo declarado pero no pagado hasta la fecha de redención.

Además, se ha declarado un dividendo en efectivo de 2.036,16 dólares por acción (20,361600 dólares por acción de depósito) para el período del 18 de junio de 2024 hasta la fecha de redención. Este dividendo se pagará por separado a los accionistas que estén en el registro a partir del 3 de septiembre de 2024. Después de la redención, no quedará ninguna acción de la Serie H en circulación.

State Street (NYSE:STT)는 5억 달러의 비누적 영구 우선주인 H 시리즈를 2024년 9월 16일상환할 계획을 발표했습니다. 이 상환은 500,000개의 보관주로 표시되는 5,000개의 모든 미결 주식을 포함합니다. 상환 가격은 주당 100,000달러(또는 보관주당 1,000달러)로 설정되며, 상환일까지 선언되었지만 지급되지 않은 배당금이 포함됩니다.

또한 주당 2,036.16달러의 현금 배당금 (보관주당 20.361600달러)이 2024년 6월 18일부터 상환일까지 지급됩니다. 이 배당금은 2024년 9월 3일 기준 주주에게 별도로 지급됩니다. 상환 후에는 H 시리즈 우선주가 더 이상 남지 않습니다.

State Street (NYSE:STT) a annoncé son intention de racheter 500 millions de dollars de ses actions privilégiées perpétuelles non cumulatives, Série H, le 16 septembre 2024. Ce rachat concerne toutes les 5 000 actions en circulation, représentées par 500 000 actions de dépôt. Le prix de rachat est fixé à 100 000 dollars par action (ou 1 000 dollars par action de dépôt), plus les dividendes déclarés mais non payés jusqu’à la date de rachat.

De plus, un dividende en espèces de 2 036,16 dollars par action (20,361600 dollars par action de dépôt) a été déclaré pour la période du 18 juin 2024 jusqu’à la date de rachat. Ce dividende sera versé séparément aux actionnaires enregistrés au 3 septembre 2024. Après le rachat, il ne restera plus d’actions privilégiées de la Série H en circulation.

State Street (NYSE:STT) hat Pläne angekündigt, 500 Millionen Dollar seiner nicht kumulierten, ewigen Vorzugsaktien der Serie H am 16. September 2024 einzulösen. Diese Einlösung betrifft alle 5.000 ausstehenden Aktien, die durch 500.000 Depotaktien repräsentiert werden. Der Einlösepreis beträgt 100.000 Dollar pro Aktie (oder 1.000 Dollar pro Depotaktie), zuzüglich aller bis zur Einlösedatum erklärten, aber nicht gezahlten Dividenden.

Darüber hinaus wurde eine Bardividende von 2.036,16 Dollar pro Aktie (20,361600 Dollar pro Depotaktie) für den Zeitraum vom 18. Juni 2024 bis zum Einlöse-Datum erklärt. Diese Dividende wird separat an die Aktionäre ausgezahlt, die am 3. September 2024 im Aktienregister stehen. Nach der Einlösung werden keine Vorzugsaktien der Serie H mehr ausstehen.

Positive


  • Redemption of $500 million in preferred stock, potentially improving the company’s capital structure

  • Declaration of a substantial cash dividend for Series H Preferred Stock holders

Negative


  • Reduction in the company’s capital base by $500 million

State Street’s decision to redeem $500 million of preferred stock is a strategic financial move that could impact its capital structure and future earnings. This redemption of Series H Preferred Stock, yielding 5.625%, suggests the company may be aiming to optimize its capital costs.

The redemption price of $100,000 per share (or $1,000 per depositary share) plus declared but unpaid dividends indicates a fair treatment of preferred shareholders. However, the loss of this dividend stream could slightly impact income-focused investors.

Importantly, this move might signal State Street’s confidence in its financial position and future cash flows. It could potentially lead to improved earnings per share for common stockholders by reducing preferred dividend payments. Investors should monitor how State Street plans to utilize the freed-up capital post-redemption.

State Street’s preferred stock redemption aligns with the broader trend of financial institutions optimizing their capital structures in response to evolving market conditions. With interest rates at elevated levels, this move could be interpreted as State Street’s strategy to potentially refinance at more favorable terms in the future.

The market’s reaction to this news will be important to watch. It may be seen as a positive signal of financial strength, potentially boosting investor confidence. However, it’s essential to consider the broader economic context, including Federal Reserve policies and banking sector health.

Investors should also assess how this redemption fits into State Street’s overall capital management strategy and its implications for future dividend policies and share buybacks. This move could enhance financial flexibility, potentially allowing for more shareholder-friendly actions in the future.











BOSTON–(BUSINESS WIRE)–
State Street Corporation (NYSE:STT) today announced that it will redeem $500 million, or all, of its 5,000 outstanding shares, of non-cumulative perpetual preferred stock, Series H (“Series H Preferred Stock”) (represented by 500,000 depositary shares, each representing a 1/100th interest in a share of Series H Preferred Stock) on September 16, 2024 (the “Redemption Date”), for cash at a redemption price of $100,000 per share (equivalent to $1,000 per depositary share) plus all dividends that have been declared but not paid up to but not including the Redemption Date (the “Series H Redemption Price”).

As previously announced, (i) a cash dividend of $2,036.16 per share of Series H Preferred Stock (or approximately $20.361600 per depositary share) (the “Series H Dividend”) has been declared for the period from June 18, 2024 up to but not including the Redemption Date. The Series H Dividend will be paid to the holders of record of the Series H Preferred Stock as of September 3, 2024 in the customary manner on the Redemption Date. Accordingly, the Series H Dividend will not be included in the Series H Redemption Price. From and after the Redemption Date, no shares of Series H Preferred Stock will be deemed outstanding and the only remaining rights of the holders of the Series H Preferred Stock will be to receive payment of the Series H Redemption Price.

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.

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.

Investors:

Elizabeth Lynn

+1 617 664 3477

Media:

Carolyn Cichon

+1 617 664 8672

Source: State Street Corporation








FAQ



When will State Street (STT) redeem its Series H Preferred Stock?


State Street (STT) will redeem its Series H Preferred Stock on September 16, 2024, which is the announced Redemption Date.


What is the redemption price for State Street’s (STT) Series H Preferred Stock?


The redemption price is $100,000 per share of Series H Preferred Stock, equivalent to $1,000 per depositary share, plus any declared but unpaid dividends up to the Redemption Date.


How much dividend has State Street (STT) declared for Series H Preferred Stock holders?


State Street has declared a cash dividend of $2,036.16 per share of Series H Preferred Stock, or approximately $20.361600 per depositary share.


What is the total value of Series H Preferred Stock that State Street (STT) is redeeming?


State Street is redeeming $500 million worth of Series H Preferred Stock, which represents all 5,000 outstanding shares.







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