Charles Schwab Raises $2.6 Billion in Dual-Tranche Senior Note Offering
The brokerage giant priced $2.6 billion in fixed-to-floating rate notes due 2032 and 2037, with rates starting at 5.108% and 5.655% respectively.
$2.6 Billion Debt Raise Completed
The Charles Schwab Corporation completed a substantial debt offering on August 12, 2026, issuing $2.6 billion in fixed-to-floating rate senior notes across two tranches, according to an 8-K filing disclosed the same day.
The offering consisted of $1.25 billion in 5.108% Fixed-to-Floating Rate Senior Notes due 2032 and $1.35 billion in 5.655% Fixed-to-Floating Rate Senior Notes due 2037 (8-K filing, 2026-08-12). Net proceeds totaled approximately $2.582 billion after deducting underwriting discounts, commissions, and estimated offering expenses.
Transaction Structure
The notes were issued under a senior indenture dated November 14, 2025, between Schwab and The Bank of New York Mellon Trust Company, N.A., as trustee, supplemented by a fourth supplemental indenture dated August 12, 2026 (8-K filing, 2026-08-12).
Schwab entered into an underwriting agreement on August 10, 2026, with a syndicate led by BofA Securities, Inc., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, TD Securities (USA) LLC, and Wells Fargo Securities, LLC as representatives (8-K filing, 2026-08-12). The underwriters purchased the 2032 notes at 99.650% of principal and the 2037 notes at 99.550% of principal.
Fixed-to-Floating Rate Structure
The notes feature a fixed-to-floating rate structure, meaning they will pay fixed coupons initially before transitioning to floating rates at a predetermined future date. The 2032 tranche carries an initial fixed rate of 5.108%, while the longer-dated 2037 tranche offers 5.655% (8-K filing, 2026-08-12). This structure provides Schwab with predictable interest costs in the near term while allowing rates to adjust with market conditions later.
The offering was made pursuant to a prospectus supplement dated August 10, 2026, and an accompanying prospectus dated December 1, 2023, filed under Schwab's effective registration statement on Form S-3 (File No. 333-275858) (8-K filing, 2026-08-12).
Market Context
The debt raise comes as Schwab, with a market capitalization of approximately $189 billion and shares last trading at $109.34, continues to manage its capital structure. MarginX data shows the company is scheduled to pay a $0.32 cash dividend on August 14, 2026, just two days after closing this debt offering.
Recent insider activity recorded by MarginX includes sales by founder Charles R. Schwab of 46,445 shares and by Nigel J. Murtagh of 24,778 shares, with Murtagh also exercising options for 24,778 shares.
The filing was signed by Michael Verdeschi, Managing Director and Chief Financial Officer, on August 12, 2026 (8-K filing, 2026-08-12). Legal counsel was provided by Wachtell, Lipton, Rosen & Katz.
Schwab is expected to report third-quarter 2026 results on October 15, 2026, according to MarginX data.
This article was generated by MarginX from the 8-K filing on 2026-08-12. It is not investment advice.