May 8 (Bloomberg) -- State Street Corp., the third-largest custody bank, is seeking to raise $1.5 billion in a bond sale, according to a person familiar with the offering.
The sale would include about $500 million in five-year senior notes and $1 billion in 10-year subordinated notes, said the person, who asked not to be identified because they weren’t authorized to speak publicly. State Street filed a prospectus with the U.S. Securities and Exchange Commission today for a potential bond sale to raise funds for general corporate purposes, which may include capital expenditures, acquisitions, debt refinancing, share repurchases or dividends, without disclosing the terms.
Joseph Hooley, State Street’s chief executive officer, has shifted his focus over the past two years away from acquisitions to returning capital to shareholders. He has raised the company’s quarterly dividend by 44 percent in the past 14 months and stepped up share repurchases.
State Street said April 19 its first-quarter net income on an operating basis rose 8 percent to $443 million, or 96 cents a share, from a year earlier.
Bank of America Corp., Goldman Sachs Group Inc. and Morgan Stanley are underwriting State Street’s bond sale, according to today’s filing.
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