Schwab Announces Redemption of All Outstanding Depositary Shares Representing Interests in Its 6.00% Non-Cumulative Perpetual Preferred Stock, Series C

Rhea-AI Summary

The Charles Schwab Corporation announced the redemption of all 600,000 shares of its 6.00% Non-Cumulative Perpetual Preferred Stock, Series C, effective June 1, 2021. This includes 24,000,000 associated depositary shares, each valued at $25.00. Though the redemption price excludes any declared quarterly dividend, it will be paid separately on the same date to eligible holders. The depositary shares are traded on the NYSE under the symbol SCHW PrC and will follow DTC procedures for redemption via Equiniti Trust Company.

Positive

• Redemption of all 600,000 shares of Series C Preferred Stock improves capital structure.
• Immediate $25 redemption per share provides liquidity to shareholders.

Negative

• Redemption may indicate a reduction in potential capital inflows from preferred shares.

The Charles Schwab Corporation (“CSC”) today announced that it will redeem on June 1, 2021, all of the 600,000 outstanding shares of its 6.00% Non-Cumulative Perpetual Preferred Stock, Series C (“Series C Preferred Stock”), and the corresponding 24,000,000 depositary shares (“Depositary Shares”), each representing a 1/40^th interest in a share of the Series C Preferred Stock. The Depositary Shares are currently traded on the New York Stock Exchange under the symbol SCHW PrC (CUSIP 808513402). The Depositary Shares will be redeemed at a redemption price of $25.00 per Depositary Share.

The redemption price does not include the regular quarterly dividend that, if declared, will be paid separately in the customary manner on June 1, 2021 to holders of record on the record date for such dividend payment.

The Depositary Shares are held in book-entry form through the Depository Trust Company (“DTC”) and will be redeemed in accordance with the procedures of DTC. Payment to DTC for the Depositary Shares will be made by Equiniti Trust Company as redemption agent. The address for Equiniti Trust Company is 1110 Centre Pointe Curve, Suite 101, Mendota Heights, Minnesota 55120-1400, Attention: Corporate Actions.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 31.5 million active brokerage accounts, 2.1 million corporate retirement plan participants, 1.5 million banking accounts, and $6.9 trillion in client assets as of February 28, 2021. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiaries, Charles Schwab & Co., Inc., TD Ameritrade, Inc., and TD Ameritrade Clearing, Inc., (members SIPC, www.sipc.org), and their affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at www.aboutschwab.com.

TD Ameritrade, Inc. and TD Ameritrade Clearing, Inc. are separate but affiliated companies and subsidiaries of TD Ameritrade Holding Corporation. TD Ameritrade Holding Corporation is a wholly owned subsidiary of The Charles Schwab Corporation. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210406006098/en/

FAQ

What is the redemption date for Charles Schwab's Series C Preferred Stock?

The redemption date is June 1, 2021.

What is the value of the depositary shares being redeemed by Charles Schwab?

Each depositary share is valued at $25.00.

How many depositary shares are involved in the redemption by Charles Schwab?

There are 24,000,000 depositary shares being redeemed.

What happens to dividends for Charles Schwab's Series C Preferred Stock?

Any declared quarterly dividend will be paid separately to holders of record on June 1, 2021.

What is the stock symbol for Charles Schwab's Series C Preferred Stock?

The stock symbol is SCHW PrC.