8-K: State Street Corporation Announces Redemption of Series H Preferred Stock

State Street Corporation will redeem all outstanding shares of its Series H non-cumulative perpetual preferred stock on September 16, 2024.

Summary

• State Street Corporation announced the redemption of all 5,000 outstanding shares of its Series H non-cumulative perpetual preferred stock.
• The redemption will occur on September 16, 2024.
• The redemption price is $100,000 per share, which is equivalent to $1,000 per depositary share.
• The redemption price includes any declared but unpaid dividends up to, but not including, the redemption date.
• The cash dividend announced on July 18, 2024, will not be included in the redemption price.

Sentiment

Score: 7

Explanation: The announcement is a routine financial transaction and is neither particularly positive nor negative. It is a standard capital management activity.

Positives

• The redemption of the Series H preferred stock simplifies State Street's capital structure.
• Shareholders of the Series H preferred stock will receive a fixed redemption price of $100,000 per share plus any applicable dividends.

Future Outlook

The company will complete the redemption of the Series H preferred stock on September 16, 2024.

Industry Context

Redeeming preferred stock is a common practice for financial institutions to manage their capital structure and reduce dividend obligations.

Comparison to Industry Standards

• Other financial institutions, such as Bank of America and JP Morgan Chase, have also redeemed preferred stock in the past to optimize their capital structure.
• The redemption price of $100,000 per share is typical for preferred stock with a par value of $100,000.

Stakeholder Impact

• Shareholders of the Series H preferred stock will receive the redemption price plus any applicable dividends.
• The redemption will simplify State Street's capital structure.

Next Steps

• State Street will complete the redemption of the Series H preferred stock on September 16, 2024.
• Shareholders of the Series H preferred stock will receive the redemption price on the redemption date.

Key Dates

Keywords

preferred stock, redemption, State Street Corporation, depositary shares, Series H, non-cumulative, perpetual