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Schwab Announces Redemption of All Outstanding Depositary Shares Representing Interests in Its 4.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E

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The Charles Schwab Corporation announced the redemption of all 6,000 shares of its 4.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E, on December 1, 2022. Each of the 600,000 Depositary Shares will be redeemed at $1,000 per share, excluding any declared quarterly dividends. The redemption will be facilitated by Equiniti Trust Company and will occur through the Depository Trust Company. Schwab remains a leader in financial services, managing $6.64 trillion in client assets.

Positive
  • Redemption of all Series E Preferred Stock may improve capital structure.
  • Company maintains a strong client asset base of $6.64 trillion.
Negative
  • Redemption may indicate a shift in capital strategy that could affect future dividend policies.
  • No new capital raised through this redemption process.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation today announced that it will redeem on December 1, 2022, all of the 6,000 outstanding shares of its 4.625% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E (“Series E Preferred Stock”), and the corresponding 600,000 depositary shares (“Depositary Shares”), each representing a 1/100th interest in a share of the Series E Preferred Stock. The Depositary Shares (CUSIP 808513 AP0) will be redeemed at a redemption price of $1,000 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 December 1, 2022 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 33.9 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $6.64 trillion in client assets. 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.

MEDIA

Mayura Hooper

Charles Schwab

Phone: 415-667-1525

INVESTORS/ANALYSTS

Jeff Edwards

Charles Schwab

Phone: 415-667-1524

Source: The Charles Schwab Corporation

FAQ

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

The redemption date is December 1, 2022.

How much will the Series E Preferred Stock be redeemed for?

Each of the 600,000 Depositary Shares will be redeemed at $1,000.

What is the impact of the preferred stock redemption on SCHW stock?

The redemption might affect future dividend policies and capital strategies of SCHW.

How many shares of Series E Preferred Stock are being redeemed?

A total of 6,000 shares of Series E Preferred Stock are being redeemed.

Does the redemption include any dividends?

The redemption price does not include any regular quarterly dividends that may be declared.

The Charles Schwab Corporation

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