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.
Ilene Fiszel Bieler