Charles Schwab to offer fixed-to-floaters due 2029, 2034

By Mary-Katherine Stinson

Lexington, Ky., May 17 – Charles Schwab Corp. plans a two-part offering of fixed-to-floating rate senior notes due 2029 and 2034, according to an 424B5 filed with the Securities and Exchange Commission.

The notes will bear interest at a fixed rate initially and will transition to SOFR plus a margin during the year before their maturity dates.

Both notes will have make-whole call redemption provisions starting at a certain point later in 2023 through their respective reset dates. The notes will be callable at par on the reset dates and then again subject to a potential par call one month before the maturity date for the 2029 notes and three months before the maturity date for the 2034 notes.

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

Bank of New York Mellon Co., NA is the trustee.

Schwab will use in-house counsel and Wachtell, Lipton, Rosen & Katz (New York and Delaware law). Simpson Thacher & Bartlett LLP is acting as counsel for the underwriters.

Proceeds will be used for general corporate purposes, including investments in subsidiaries and supporting business growth.

Schwab is a Westlake, Tex.-based savings and loan holding company.

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