By Sheri Kasprzak
New York, Jan. 17 - State Street Corp. priced $500 million in 8.25% fixed-to-floating rate Normal Automatic Preferred Enhanced Capital Securities.
The securities pay distributions at 8.25% through March 15, 2011, then switch to a floating rate of Libor plus 499 basis points.
The securities, issued by State Street Capital Trust III, are initially backed by a junior subordinated debenture and a stock purchase contract.
On March 15, 2011, the purchase contract is exercised and the securities will be backed by preferred stock.
Holders can exchange the Normal APEX securities and U.S. Treasuries for Stripped APEX and Capital APEX securities, the former representing a purchase contract and a Treasury, the latter a junior subordinated debenture.
Goldman, Sachs & Co. is the bookrunner with Lehman Brothers, Morgan Stanley, Siebert Capital Markets and the Williams Capital Group, LP.
State Street, based in Boston, is a financial holding company.
| Issuer: | State Street Corp.
|
| Issue: | Fixed-to-floating rate Normal Automatic Preferred Enhanced Capital Securities
|
| Amount: | $500 million
|
| Maturity: | Perpetual
|
| Distributions: | 8.25% through March 15, 2011, then Libor plus 499 bps
|
| Call: | March 15, 2013 onwards at par
|
| Underwriters: | Goldman, Sachs & Co. (lead); Lehman Brothers; Morgan Stanley; Siebert Capital Markets; Williams Capital Group, LP
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 25
|
| Distribution: | Off shelf
|
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