State Street (STT) To Offer Common Stock, Repay TARP

State Street Corporation (NYSE: STT) announced that it has commenced a public offering of its common stock.

State Street also announced today that it plans to commence a separate public offering of non-guaranteed senior notes in the near term. The notes will not be guaranteed under the FDIC.

Subject to consultation with its banking regulators, State Street plans to notify the US Treasury of its intention to repurchase the US Treasury’s preferred stock and common stock purchase warrant investment in State Street under the TARP Capital Purchase Program. If permitted to do so, the company expects to repurchase the preferred stock and warrant with proceeds of these offerings. State Street intends to use offering proceeds not used for this repurchase for general corporate purposes.

State Street also announced today that it elected to take action, effective on May 15, 2009, that resulted in consolidation onto its balance sheet of the asset-backed commercial paper conduits it administers. In connection with the consolidation of the conduits, State Street recorded for accounting purposes an after-tax loss of approximately $3.7 billion relating to the recognition of the unrealized mark-to-market losses on the conduit assets.