By Jennifer Chiou
New York, Nov. 25 - State Street Corp. registered the $2 billion of fixed-rate cumulative perpetual preferred stock it sold to the U.S. Treasury under the Troubled Asset Relief Program (TARP) for public trading in an S-3 shelf registration with the Securities and Exchange Commission.
Also covered under the registration is up to $300 million of warrants to purchase 5,576,208 shares of common stock.
The preferreds pay cumulative dividends at 5% per year to Dec. 15, 2013 after which they step up to 9%.
The preferreds may not be redeemed prior to Dec. 15, 2011 unless the company has obtained proceeds from one or more qualified offerings of $500 million.
State Street said it will not receive proceeds from the reselling holders.
Boston-based State Street is a bank holding company.
| Issuer: | State Street Corp.
|
| Issue: | Series B preferred stock
|
| Amount: | $2 billion
|
| Maturity: | Perpetual
|
| Dividend: | 5%, steps up to 9% after Dec. 15, 2013
|
| Liquidation preference: | $100,000
|
| Call: | Before Dec. 15, 2011, only with proceeds from one or more tier 1 equity offerings of $500 million; after Dec. 15, 2011 at par
|
| Warrants: | For 5,576,208 shares (reduced by 50% on receipt of $2 billion of equity)
|
| Warrant exercise price: | $53.80
|
| Warrant expiration: | Oct. 28, 2018
|
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