SCHWAB ANNOUNCES Redemption of All Outstanding Shares of Its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A

Rhea-AI Summary

The Charles Schwab Corporation announced the redemption of all 400,000 outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, effective November 1, 2022, at a price of $1,000 per share. The redemption will not include a regular quarterly dividend, which if declared, will be paid separately to holders of record on the same date. The shares will be redeemed through the Depository Trust Company, managed by Equiniti Trust Company.

As of August 31, 2022, Schwab reported $7.13 trillion in client assets and 34 million active brokerage accounts.

Positive

• Redemption of 400,000 preferred shares enhances equity structure.
• No outstanding dividends reduce future liabilities.

Negative

• Redemption costs may impact cash flow.
• Elimination of preferred shares could lead to higher capital costs in future financing.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation today announced that it will redeem on November 1, 2022, all of the 400,000 outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (“Series A Preferred Stock”) (CUSIP 808513AE5) at a redemption price of $1,000 per share.

The redemption price does not include the regular quarterly dividend that, if declared, will be paid separately in the customary manner on November 1, 2022 to holders of record on the record date for such dividend payment.

The Series A Preferred Stock is 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 Series A Preferred Stock 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 34.0 million active brokerage accounts, 2.3 million corporate retirement plan participants, 1.7 million banking accounts, and $7.13 trillion in client assets as of August 31, 2022. 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, https://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 https://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/20220922005898/en/

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 price for SCHW's Series A Preferred Stock?

The redemption price for SCHW's Series A Preferred Stock is $1,000 per share.

When will Charles Schwab redeem its Series A Preferred Stock?

Charles Schwab will redeem its Series A Preferred Stock on November 1, 2022.

How many shares of Series A Preferred Stock is SCHW redeeming?

SCHW is redeeming all 400,000 outstanding shares of its Series A Preferred Stock.

What is the significance of redeeming SCHW's preferred shares?

Redeeming the preferred shares may enhance the equity structure and reduce future liabilities.

How will the redemption of Series A Preferred Stock affect SCHW's financials?

The redemption could impact cash flow and potential future financing costs.