State Street Prices $500M Preferred Stock Offering to Strengthen Capital Base

summarizeSummary

State Street launched a $500 million preferred stock offering, pricing 500,000 depositary shares at $1,000 each. Net proceeds of ~$495.7 million will be used for general corporate purposes, adding to the bank's capital stack after a strong Q2 2026.

check_boxKey Events · Financing and Capital Events · STT

• Preferred Stock Offering

  State Street is issuing 500,000 depositary shares of Series L Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock at $1,000 per share, with an initial dividend rate of 6.35%.

• Capital Raise Size

  The offering is expected to generate approximately $495.7 million in net proceeds after underwriting discounts and expenses, to be used for general corporate purposes.

• Dividend Terms

  Dividends are non-cumulative, payable quarterly starting December 15, 2026. The rate resets on September 15, 2031, to the five-year Treasury rate plus 2.023%.

• Underwriters

  Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as joint book-running managers, with Academy Securities and Blaylock Van as co-managers.

auto_awesomeAnalysis · STT · Finance

State Street is issuing 500,000 depositary shares of a new Series L preferred stock at $1,000 each, raising roughly $495.7 million after fees. The 6.35% initial dividend rate resets in 2031 at a spread over Treasuries. For a bank with a $50.7 billion market cap, this is a sizable capital raise — not dilutive to common equity, but it strengthens the balance sheet and supports regulatory capital requirements. The offering follows a recent $1.25 billion senior note issuance and a dividend hike, signaling active capital management amid strong earnings momentum.