State Street Prices $500 Million Preferred Stock Offering Through Depositary Shares
The custody bank filed amended articles to issue Series L preferred stock and signed an underwriting agreement with Goldman Sachs and Morgan Stanley for the public offering.
$495.7 Million Net Proceeds Expected
State Street Corporation has completed the pricing of a preferred stock offering that will raise approximately $495.7 million in net proceeds after underwriting discounts and expenses, according to an 8-K filing dated August 7, 2026.
The Boston-based custody bank entered into an underwriting agreement on August 5, 2026, with Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC to issue and sell 500,000 depositary shares in an underwritten public offering (8-K filing, 2026-08-07). The offering was priced at $1,000 per depositary share.
Series L Preferred Stock Structure
Each depositary share represents a 1/100th ownership interest in a share of Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series L, with a liquidation preference of $100,000 per share (8-K filing, 2026-08-07). The preferred stock carries no par value per share.
On August 6, 2026, State Street filed Articles of Amendment with the Secretary of the Commonwealth of Massachusetts to formally establish the designations, preferences, limitations, and relative rights of the Series L preferred stock (8-K filing, 2026-08-07).
The depositary shares will be evidenced by depositary receipts issued by Equiniti Trust Company, LLC, which will serve as depositary under a deposit agreement to be executed in connection with the offering (8-K filing, 2026-08-07). The filing noted that the deposit agreement will be filed at a later date.
Registration and Offering Timeline
The public offering is being conducted pursuant to a registration statement on Form S-3 (File No. 333-288196) that State Street filed with the Securities and Exchange Commission on June 20, 2025 (8-K filing, 2026-08-07). The registration statement became effective upon filing, indicating State Street qualified as a well-known seasoned issuer at the time.
State Street filed a preliminary prospectus supplement with the SEC on August 5, 2026, followed by a final prospectus supplement on August 6, 2026 (8-K filing, 2026-08-07).
Market Context
The preferred stock issuance comes as State Street, with a market capitalization of approximately $51 billion, continues to manage its capital structure. According to MarginX data, the company's common stock last closed at $184.68.
MarginX data shows recent insider selling activity, with executives Elizabeth Schaefer, W. Bradford Hu, and Kathryn M. Horgan completing sales in recent periods. The company is scheduled to report third-quarter 2026 results on October 14, 2026, according to MarginX data.
The use of depositary shares is a common structure for preferred stock offerings, allowing institutional and retail investors to purchase smaller fractional interests in high-value preferred shares. The non-cumulative perpetual designation means dividends do not accumulate if unpaid, and the securities have no maturity date.
This article was generated by MarginX from the 8-K filing on 2026-08-07. It is not investment advice.