AP NEWS

State Street Corporation Prices Preferred Stock Offering

September 20, 2018

BOSTON--(BUSINESS WIRE)--Sep 20, 2018--State Street Corporation (“State Street”) (NYSE: STT) today announced the pricing of an underwritten public offering of $500 million of depositary shares with a liquidation preference of $1,000 per share, each representing a 1/100 th interest in a share of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series H. The offering is being conducted as a public offering registered under the Securities Act of 1933, as amended.

Dividends on the Series H preferred stock will be payable on a non-cumulative basis semi-annually in arrears at a fixed rate of 5.625% to, but excluding, December 15, 2023. Thereafter, the Series H preferred stock will be callable and dividends will be payable quarterly at a floating rate equivalent to three-month U.S. LIBOR plus 2.539%. Dividend payments on the Series H preferred stock will occur only when, as and if declared by State Street’s board of directors. State Street may also redeem the Series H preferred stock upon the occurrence of a regulatory capital treatment event.

The offering is expected to close on September 27, 2018, subject to the satisfaction of customary closing conditions.

State Street intends to use the net proceeds from this offering to fund a portion of the cash consideration payable for, and certain costs associated with, its previously announced planned acquisition of Charles River Systems, Inc. (“Charles River Development”), expected to be completed in the fourth quarter of 2018. Completion of this offering is not contingent upon the completion of the acquisition of Charles River Development. If the acquisition of Charles River Development is not completed, State Street will use the net proceeds for general corporate purposes.

Goldman Sachs & Co. LLC, Morgan Stanley and Wells Fargo Securities are acting as representatives of the underwriters for the offering.

The offering is being made pursuant to an effective registration statement on Form S-3 (including a prospectus) filed with the U.S. Securities and Exchange Commission (the “SEC”). Prospective investors should read the prospectus forming a part of that registration statement and the prospectus supplement related to the offering and the other documents that State Street has filed with the SEC for more complete information about State Street and this offering. These documents are available at no charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the prospectus and prospectus supplement relating to the offering, when available, may be obtained from Goldman Sachs & Co. LLC at 200 West Street, New York, NY 10282, Attn: Prospectus Department, telephone: 1-866-471-2526, facsimile: 1-212-902-9316 or by emailing prospectus-ny@ny.email.gs.com, from Morgan Stanley at Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014 or from Wells Fargo Securities at Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS Customer Service, telephone: 1-800-645-3751 or by emailing wfscustomerservice@wellsfargo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy the shares of State Street’s common stock, nor shall there be any offer, solicitation or sale of the shares of State Street’s common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

State Street Corporation (NYSE: STT) is a provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $33.87 trillion in assets under custody and administration and $2.72 trillion* in assets under management as of June 30, 2018, State Street operates globally in more than 100 geographic markets and employs over 38,000 worldwide.

*Assets under management include the assets of the SPDR® Gold ETF and the SPDR® Long Dollar Gold Trust ETF (approximately $33 billion as of June 30, 2018), for which State Street Global Advisors Funds Distributors, LLC (SSGA FD) serves as marketing agent; SSGA FD and State Street Global Advisors are affiliated.

Forward-Looking Statements

Statements in this release that are not strictly historical, including statements regarding the terms of the proposed offering, the timing and completion of the offering, State Street’s intended use of proceeds, the acquisition of Charles River Development and any other statements regarding events or developments that State Street expects or anticipates will or may occur in the future, are “forward-looking” statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. There are a number of important risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These risks and uncertainties include, among other things, risks and uncertainties relating to capital markets conditions and completion of the offering, the ability of the other parties to the acquisition of Charles River Development to satisfy the conditions to the acquisition on a timely basis and such parties’ ability to complete the acquisition on the anticipated terms and schedule, including the ability to obtain regulatory approvals. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in State Street’s SEC filings, including its Annual Report on Form 10-K for the year ended December 31, 2017 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2018. These forward-looking statements speak only as of the date of this release, and State Street does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

View source version on businesswire.com:https://www.businesswire.com/news/home/20180920005964/en/

CONTACT: State Street Corporation

Ilene Fiszel Bieler, 617-664-3477

or

Marc Hazelton, 617-513-9439

KEYWORD: UNITED STATES NORTH AMERICA MASSACHUSETTS

INDUSTRY KEYWORD: PROFESSIONAL SERVICES BANKING FINANCE

SOURCE: State Street Corporation

Copyright Business Wire 2018.

PUB: 09/20/2018 05:49 PM/DISC: 09/20/2018 05:48 PM

http://www.businesswire.com/news/home/20180920005964/en

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