Charles Schwab’s 6% noncumulative preferreds to begin trading on NYSE

By Stephanie N. Rotondo

Phoenix, Aug. 4 – The Charles Schwab Corp.’s $600 million of 6% series C noncumulative perpetual preferred stock will list on the New York Stock Exchange on Wednesday, according to a market source.

The ticker symbol will be “SCHWPC.” The deal priced July 27.

The preferreds were issued as depositary shares representing a 1/40th interest.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC were the joint bookrunning managers.

When declared, dividends will be paid on the first day of March, June, September and December, beginning Dec. 1.

The preferreds become redeemable on or after Dec. 1, 2020 at par plus accrued dividends. The company can also redeem the preferreds in whole within 90 days of a regulatory capital treatment event.

The San Francisco-based financial services company will use the proceeds to support balance sheet growth, including the migration of certain client balances from sweep money market funds into Schwab Bank, which may be subject to notice and/or approvals from clients and regulators.

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