Minority Business Enterprises Underwrite the Majority of State Street 2031 Senior Subordinated Offering

Rhea-AI Summary

State Street Corporation (NYSE:STT) has successfully issued $850 million in senior subordinated bonds, featuring a coupon rate of 2.20%. This offering, which closed yesterday, was notable for its diverse underwriting syndicate, predominantly composed of Black- and Latinx-Owned Business Enterprises. The deal was oversubscribed with a final order book 2.6 times larger than expected, allowing State Street to tighten pricing by 27 basis points. This endeavor highlights the company's commitment to increasing representation in financial services and broadening its financing partnerships.

Positive

• Oversubscribed bond offering with final order book 2.6 times larger than expected.
• Successfully tightened pricing by 27 basis points, achieving the lowest coupon since 2008.

Negative

• None.

State Street Corporation (NYSE:STT) today announced that it has issued $850 million senior subordinated bonds at a coupon of 2.20 percent. The offering, which closed yesterday, was structured utilizing an underwriting syndicate substantially made up of Black- and Latinx-Owned Business Enterprises as bookrunners and co-managers.

The full syndicate included BofA Securities, Inc., CastleOak Securities, L.P., Goldman Sachs & Co. LLC, and Siebert Williams Shank & Co., LLC as lead bookrunners. Blaylock Van, LLC, Great Pacific Securities, Loop Capital Markets LLC, and Samuel A. Ramirez & Company also acted as co-managers. Over 50% of the bonds were underwritten by Black-owned or Latinx-owned firms.

“This deal syndicate demonstrates our commitment to expanding our relationships and increasing our financing partnerships with Minority, Women and Veteran Business Enterprises,” said Eric Aboaf, chief financial officer of State Street Corporation. “We need to hold ourselves accountable for broadening representation across all areas of our business, including how we structure our capital markets activities. We had extremely positive feedback in this offering, which was oversubscribed, which also speaks to the interest from the market.”

“We commend State Street on its intentional demonstration of its commitment to diversity, through the substantive inclusion of two minority-owned investment banks as active book running managers on the company’s extremely successful debt offering,” commented Christopher J. Williams, Chairman of Siebert Williams Shank & Co., LLC . “In addition to enabling us to increase the resources committed to growing our business capabilities, the impact of State Street providing diverse firms with this meaningful opportunity is to enable us to increase employment, internship opportunities, and our broad support of diverse communities.”

“Working in tandem with the other managers, we were able to upsize the transaction and tighten pricing, resulting in the lowest coupon and spread across all US bank subordinated offerings since 2008,” David Jones, President & CEO of CastleOak Securities, L.P. added. “We are incredibly proud to have been a bookrunner on such a well-executed transaction.”

State Street was able to tighten pricing on this offering by 27 basis points from initial price talk and had a final orderbook that was 2.6 times oversubscribed.

Learn more about State Street’s commitment to increasing racial equity in the capital markets and broader financial services industry as part of its 10 Actions to Address Racism and Inequality.

About State Street

State Street Corporation (NYSE: STT) is one of the world's leading providers of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $38.8 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2020, State Street operates globally in more than 100 geographic markets and employs approximately 39,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2020 includes approximately $75 billion of assets with respect to SPDR® products for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) acts solely as the marketing agent. SSGA FD and State Street Global Advisors are affiliated.

© 2021 State Street Corporation - All Rights Reserved

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FAQ

What was the value of the bonds issued by State Street on March 4, 2021?

State Street issued $850 million in senior subordinated bonds.

What was the coupon rate for State Street's recent bond offering?

The coupon rate for the bond offering was 2.20%.

Who were the lead bookrunners for State Street's bond issue?

The lead bookrunners included BofA Securities, CastleOak Securities, Goldman Sachs, and Siebert Williams Shank.

How much was State Street's bond offering oversubscribed?

The bond offering was oversubscribed by 2.6 times.

What does State Street's bond offering signify about its commitment to diversity?

The offering included substantial participation from Black- and Latinx-Owned Business Enterprises, showcasing State Street's commitment to diversity.