State Street Partners with Black-Owned Businesses to Underwrite $1.25 Billion of Senior Unsecured Debt

Rhea-AI Summary

State Street Corporation (NYSE: STT) has successfully issued $1.25 billion in senior unsecured debt, closing yesterday. This issuance emphasizes the company's commitment to diversity and inclusion (IDE) in the financial services industry, with Black-owned firms playing a key role as bookrunners and co-managers. The offering was significantly oversubscribed, with a final order book 7.5 times the total amount. The debt issuance is part of State Street's ongoing strategy to support Black and Latinx-owned investment companies, contributing to greater equity in society. State Street manages approximately $3.5 trillion in assets as of December 31, 2022.

Positive

• The $1.25 billion debt offering was 7.5 times oversubscribed, indicating strong demand.
• The deal involved Black-owned investment firms as co-managers, enhancing diversity in business practices.

Negative

• None.

Offering reinforces State Street’s commitment to diversity in the financial services industry

BOSTON--(BUSINESS WIRE)-- State Street Corporation (NYSE: STT) announced that it has issued an aggregate principal amount of $1.25 billion of senior unsecured debt. The offering, which closed yesterday, was structured in keeping with State Street’s ongoing inclusion, diversity and equity (IDE) efforts, with Siebert Williams Shank & Co., LLC acting as a bookrunner, and Blaylock Van, LLC, CastleOak Securities, L.P., and Loop Capital Markets LLC, each acting as co-managers. All four firms are Black-owned investment firms and collectively, have underwritten one-third of the debt securities in the issuance. The full underwriting syndicate also included Goldman Sachs & Co. LLC, BofA Securities, Inc., and Morgan Stanley & Co. LLC each acting as bookrunners.

This action reinforces State Street’s commitment to strengthening Black-owned businesses and represents an ongoing effort to partner with Black and Latinx-owned investment firms, as well as firms owned by other underrepresented groups, as part of its debt offerings. This offering marks the seventh such State Street issuance where syndication has been structured under State Street’s IDE strategy, which has a diverse-owned firm acting as a bookrunner, reflecting the firm’s continuing efforts to amplify the impact of its actions.

Supporting Black-owned businesses as underwriters complements a number of ongoing IDE-related efforts within the firm’s 10 Actions to Address Racism and Inequality, and contributes meaningfully to Black equity in society, consistent with the firm’s MLT Black Equity at Work Bronze Designation that was earned earlier this month.

“We are pleased to announce this deal, as we prepare to recognize and celebrate Black History Month beginning next week,” said Eric Aboaf, Vice Chair and Chief Financial Officer of State Street Corporation. “By partnering with Black-owned businesses we aim to further improve diverse representation within our industry while amplifying our impact as an organization.”

“Through its strong partnership with diverse-owned investment banks, State Street continues to demonstrate its unwavering commitment to providing meaningful commercial opportunities to diverse-owned businesses that historically have been underrepresented in the financial services industry,” stated Chris Williams, Chairman, Siebert Williams Shank & Co, LLC.

The aggregate $1.25 billion offering of senior notes priced at the tight end of initial price talk areas for each tranche and had an aggregate final orderbook that was 7.5 times oversubscribed.

About State Street Corporation

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 $36.7 trillion in assets under custody and/or administration and $3.5 trillion* in assets under management as of December 31, 2022. State Street operates globally in more than 100 geographic markets and employs approximately 42,000 worldwide. For more information, visit State Street's website at www.statestreet.com.

*Assets under management as of December 31, 2022 includes approximately $59 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.

© 2023 State Street Corporation - All Rights Reserved

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View source version on businesswire.com: https://www.businesswire.com/news/home/20230127005377/en/

Media Contact:

Ed Patterson

+1 404 213 3106

epatterson@statestreet.com

Source: State Street Corporation

FAQ

What recent financial action did State Street Corporation (STT) take?

State Street Corporation issued $1.25 billion in senior unsecured debt, emphasizing its commitment to diversity.

How was the recent debt offering by State Street received?

The debt offering was oversubscribed by 7.5 times, indicating high investor interest.

What is the significance of Black-owned firms in State Street's recent debt issuance?

Black-owned firms acted as bookrunners and co-managers in the debt issuance, reflecting State Street's commitment to diversity.

What assets does State Street manage as of December 31, 2022?

State Street manages approximately $3.5 trillion in assets.