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The Charles Schwab Corporation Announces Pricing of $13.1 Billion Secondary Offering of Its Common Stock Held by an Affiliate of The Toronto-Dominion Bank

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Charles Schwab (NYSE: SCHW) has announced the pricing of a major secondary offering by TD Group US Holdings , an affiliate of The Toronto-Dominion Bank. The offering consists of 165,443,530 shares priced at $79.25 per share, totaling approximately $13.1 billion.

The secondary offering is expected to close on February 12, 2025, subject to customary conditions. Following this offering and a previously announced $1.5 billion share repurchase by Charles Schwab from TD, TD will have completely divested its stake in the company. Charles Schwab will not receive any proceeds from this stock sale.

The offering is being led by TD Securities and Goldman Sachs & Co. A registration statement and preliminary prospectus supplement have been filed with the SEC, with a final prospectus to follow.

Charles Schwab (NYSE: SCHW) ha annunciato la fissazione del prezzo di un'importante offerta secondaria da parte di TD Group US Holdings, un'affiliata di The Toronto-Dominion Bank. L'offerta consiste in 165.443.530 azioni prezzate a 79,25 $ per azione, per un totale di circa 13,1 miliardi di dollari.

L'offerta secondaria dovrebbe concludersi il 12 febbraio 2025, soggetta a condizioni consuete. A seguito di questa offerta e di un precedente riacquisto di azioni da 1,5 miliardi di dollari da parte di Charles Schwab da TD, TD avrà completamente disinvestito la sua partecipazione nella società. Charles Schwab non riceverà alcun provento da questa vendita di azioni.

L'offerta è guidata da TD Securities e Goldman Sachs & Co. Una dichiarazione di registrazione e un supplemento di prospetto preliminare sono stati presentati alla SEC, con un prospetto finale in arrivo.

Charles Schwab (NYSE: SCHW) ha anunciado el precio de una importante oferta secundaria por parte de TD Group US Holdings, una afiliada de The Toronto-Dominion Bank. La oferta consiste en 165,443,530 acciones con un precio de $79.25 por acción, totalizando aproximadamente $13.1 mil millones.

Se espera que la oferta secundaria se cierre el 12 de febrero de 2025, sujeta a condiciones habituales. Tras esta oferta y un recompra de acciones de $1.5 mil millones previamente anunciada por Charles Schwab a TD, TD habrá desinvertido completamente su participación en la empresa. Charles Schwab no recibirá ingresos de esta venta de acciones.

La oferta está liderada por TD Securities y Goldman Sachs & Co. Se ha presentado una declaración de registro y un suplemento de prospecto preliminar a la SEC, con un prospecto final a seguir.

Charles Schwab (NYSE: SCHW)는 The Toronto-Dominion Bank의 계열사인 TD Group US Holdings의 주요 2차 공모 가격을 발표했습니다. 이 공모는 165,443,530주로, 주당 가격은 $79.25이며, 총액은 약 $13.1억 달러입니다.

2차 공모는 2025년 2월 12일에 마감될 예정이며, 일반적인 조건이 적용됩니다. 이번 공모와 Charles Schwab이 TD로부터 발표한 $1.5억 달러 규모의 자사주 매입 이후, TD는 회사에 대한 지분을 완전히 매각하게 됩니다. Charles Schwab은 이번 주식 판매로 인해 어떤 수익도 받지 않습니다.

이번 공모는 TD Securities와 Goldman Sachs & Co.가 주도하고 있습니다. SEC에 등록 신청서와 초기 투자제안서 보충이 제출되었으며, 최종 제안서는 추후에 발표될 예정입니다.

Charles Schwab (NYSE: SCHW) a annoncé la tarification d'une importante offre secondaire par TD Group US Holdings, une filiale de la Toronto-Dominion Bank. L'offre comprend 165.443.530 actions au prix de 79,25 $ par action, totalisant environ 13,1 milliards de dollars.

L'offre secondaire devrait se clôturer le 12 février 2025, sous réserve des conditions habituelles. Suite à cette offre et à un rachat d'actions de 1,5 milliard de dollars précédemment annoncé par Charles Schwab auprès de TD, TD aura totalement cédé sa participation dans la société. Charles Schwab ne recevra aucun produit de cette vente d'actions.

L'offre est dirigée par TD Securities et Goldman Sachs & Co. Une déclaration d'enregistrement et un supplément de prospectus préliminaire ont été déposés auprès de la SEC, avec un prospectus final à suivre.

Charles Schwab (NYSE: SCHW) hat die Preisstellung eines bedeutenden sekundären Angebots durch die TD Group US Holdings, eine Tochtergesellschaft der Toronto-Dominion Bank, bekannt gegeben. Das Angebot umfasst 165.443.530 Aktien, die zu einem Preis von 79,25 $ pro Aktie angeboten werden, was insgesamt etwa 13,1 Milliarden $ entspricht.

Das sekundäre Angebot soll am 12. Februar 2025 abgeschlossen werden, vorbehaltlich üblicher Bedingungen. Nach diesem Angebot und einem bereits angekündigten Aktienrückkauf von 1,5 Milliarden $ durch Charles Schwab von TD wird TD seine Beteiligung an dem Unternehmen vollständig veräußert haben. Charles Schwab wird aus diesem Aktienverkauf keine Einnahmen erhalten.

Das Angebot wird von TD Securities und Goldman Sachs & Co. geleitet. Eine Registrierungserklärung und ein vorläufiger Prospektzusatz wurden bei der SEC eingereicht, und ein endgültiger Prospekt wird folgen.

Positive
  • Complete divestment of TD's stake removes uncertainty about future large block sales
  • $1.5 billion share repurchase demonstrates company's commitment to returning capital to shareholders
Negative
  • Large secondary offering of $13.1 billion could create temporary selling pressure on the stock
  • Significant change in ownership structure with major shareholder TD exiting completely

Insights

The $13.1 billion secondary offering of Charles Schwab shares by TD Bank, coupled with a $1.5 billion share repurchase, represents a pivotal moment in the financial services sector. The pricing at $79.25 per share reflects a modest discount to current market levels, strategically balanced to attract institutional investors while minimizing downward pressure on the stock.

The transaction's structure deserves particular attention. The decision to split the exit between a secondary offering and share repurchase demonstrates sophisticated capital markets execution. The repurchase component helps absorb some selling pressure while potentially being EPS accretive for remaining shareholders. The involvement of TD Securities and Goldman Sachs as lead underwriters suggests a well-coordinated distribution strategy to institutional investors.

Market implications are multifaceted:

  • The complete exit of TD Bank eliminates any overhang concerns related to future large block sales
  • The substantial size of the offering may lead to increased trading volume and potentially higher short-term volatility
  • The clean break between TD and Schwab could allow both institutions greater strategic flexibility in their respective markets
  • The offering's successful pricing suggests strong institutional confidence in Schwab's fundamental outlook

For Schwab, this marks the end of a significant strategic relationship but also presents opportunities. The simplified ownership structure could enhance corporate agility and decision-making processes. The successful placement of such a large block also demonstrates market confidence in Schwab's business model and growth prospects.

WESTLAKE, Texas--(BUSINESS WIRE)-- The Charles Schwab Corporation (NYSE: SCHW) (the “Company” or “Charles Schwab”) today announced the pricing of the previously announced secondary offering by TD Group US Holdings LLC, an affiliate of The Toronto-Dominion Bank (“TD”), of 165,443,530 shares of the Company’s common stock at $79.25 per share. The secondary offering is expected to close on February 12, 2025, subject to customary closing conditions.

Following the completion of the secondary offering and the previously announced $1.5 billion share repurchase by the Company from TD, TD will have disposed of all of its shares. Charles Schwab will not receive any of the proceeds from the sale of shares of its common stock.

The secondary offering was led by TD Securities and Goldman Sachs & Co. LLC.

Charles Schwab has filed a registration statement (including a prospectus) and a preliminary prospectus supplement with the SEC for the secondary offering to which this communication relates. A final prospectus relating to the offering will be filed with the SEC and may be obtained, when available, for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and the final prospectus supplement, when available, if you request them by contacting (i) TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, telephone: 1 (855) 495-9846 or by email at TD.ECM_Prospectus@tdsecurities.com; or (ii) Goldman Sachs & Co. LLC, Attn: Prospectus Department, 200 West Street, New York, NY 10282, telephone: 1 (866) 471-2526, facsimile: (212) 902-9316 or by email at Prospectus-ny@ny.email.gs.com.

This announcement shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

Forward-Looking Statements

This press release contains forward-looking statements that involve substantial risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied by such statements. These forward-looking statements include statements regarding the offering and the share repurchase, the Company’s plans, objectives, expectations and intentions and the financial condition, results of operations and business of the Company. These forward-looking statements are subject to risks and uncertainties, including, among other things, risks related to the ability of the Company to consummate the offering and the share repurchase and the risks described in the company’s most recent reports on Form 10-K and Form 10-Q, which have been filed with the Securities and Exchange Commission and are available on the company’s website (www.aboutschwab.com/financial-reports) and on the Securities and Exchange Commission’s website (www.sec.gov). The Company makes no commitment to update any forward-looking statements.

About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 36.5 million active brokerage accounts, 5.4 million workplace plan participant accounts, 2.0 million banking accounts, and $10.10 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 subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its 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.

MEDIA

Mayura Hooper, 415-667-1525

public.relations@schwab.com

INVESTORS/ANALYSTS

Jeff Edwards, 817-854-6177

investor.relations@schwab.com

Source: The Charles Schwab Corporation

FAQ

How many shares is TD selling in the SCHW secondary offering?

TD is selling 165,443,530 shares of Charles Schwab (SCHW) stock in the secondary offering.

What is the price per share for SCHW's secondary offering in 2025?

The secondary offering is priced at $79.25 per share.

When will TD's secondary offering of SCHW shares close?

The secondary offering is expected to close on February 12, 2025, subject to customary closing conditions.

Will Charles Schwab (SCHW) receive any proceeds from TD's secondary offering?

No, Charles Schwab will not receive any proceeds from the sale of shares in this secondary offering.

How much is SCHW's share repurchase from TD worth?

Charles Schwab has announced a $1.5 billion share repurchase from TD.

Will TD retain any SCHW shares after the secondary offering?

No, following the completion of the secondary offering and share repurchase, TD will have disposed of all its shares in Charles Schwab.
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