Charles Schwab plans series I fixed-rate non-cumulative preferreds

Chicago, March 15 – Charles Schwab Corp. plans to price an offering of series I fixed-rate reset non-cumulative perpetual preferred stock, according to a 424B5 filing with the Securities and Exchange Commission on Monday.

The preferreds will pay a fixed-rate dividend until June 1, 2026. The shares will reset to a floating rate based on the five-year Treasury plus a spread on that date and on every five-year reset date thereafter.

The preferreds can be redeemed on any quarterly dividend payment date at par plus any unpaid dividends after June 1, 2026. They can also be redeemed at any time within 90 days following a regulatory capital treatment event.

BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.

Proceeds are to be used for general corporate purposes.

The company does not plan to list the preferreds on any securities exchange.

Charles Schwab is a San Francisco-based financial services company.

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