By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Jan. 24 – State Street Corp. gave additional details on its $1.25 billion of notes (A1/A/AA-) that priced on Monday in a two-part transaction, according to FWPs filed with the Securities and Exchange Commission.
As previously reported, the company sold $500 million of notes due 2026 with a starting 4.857% coupon. The rate will reset to SOFR plus 60.4 bps on Jan. 26, 2025.
Pricing came at Treasuries plus 62.5 basis points. Initial talk was in the Treasuries plus 90 bps area.
The second tranche priced as $750 million of notes due 2034. The starting 4.821% interest rate converts to a floating rate of SOFR plus 156.7 bps on Jan. 26, 2033.
Both tranches of notes priced at par.
Both notes feature a par call in full only on the date one year before maturity, on Jan. 26, 2025 and Jan. 26, 2033, respectively.
Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Siebert Williams Shank & Co., LLC are the bookrunners.
Proceeds will be used for general corporate purposes, which may include working capital, capital expenditures, investments in or loans to the company’s subsidiaries, refinancing of outstanding debt, refinancing of outstanding capital securities, share repurchases, dividends, funding potential future acquisitions and satisfaction of other obligations.
The asset management company is based in Boston.
| Issuer: | State Street Corp.
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| Amount: | $1.25 billion
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| Issue: | Fixed-to-floating-rate notes
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| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities, Inc., Morgan Stanley & Co. LLC and Siebert Williams Shank & Co., LLC
|
| Co-managers: | Blaylock Van, LLC, CastleOak Securities, LP and Loop Capital Markets LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Wilmer Cutler Pickering Hale and Dorr LLP
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| Counsel to underwriters: | Cravath, Swaine & Moore LLP
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| Trade date: | Jan. 23
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| Settlement date: | Jan. 26
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| Ratings: | Moody’s: A1
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| S&P: A
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| Fitch: AA-
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| Distribution: | SEC registered
|
|
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| 2026 notes
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| Amount: | $500 million
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| Maturity: | Jan. 26, 2026
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| Coupon: | 4.857% initial rate; resets to SOFR plus 60.4 bps on Jan. 26, 2025
|
| Price: | Par
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| Yield: | 4.857%
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| Spread: | Treasuries plus 62.5 bps
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| Call features: | Par call only on Jan. 26, 2025
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| Price talk: | Treasuries plus 90 bps area
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| Cusip: | 857477BZ5
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|
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| 2034 notes
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| Amount: | $750 million
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| Maturity: | Jan. 26, 2034
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| Coupon: | 4.821% initial rate; resets to SOFR plus 156.7 bps on Jan. 26, 2033
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| Price: | Par
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| Yield: | 4.821%
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| Spread: | Treasuries plus 130 bps
|
| Call features: | Par call only on Jan. 26, 2033
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| Price talk: | Treasuries plus 160 bps area
|
| Cusip: | 857477CA9
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