0001193125-26-170805
SEC filingThe Charles Schwab Corporation filed a Certificate of Designations for Series L Preferred Stock and entered into an underwriting agreement to issue 1,500,000 Depositary Shares representing 1/100th interests in the preferred stock.
The Charles Schwab Corporation completed key steps in its preferred stock issuance by filing the Certificate of Designations for 15,000 shares of Series L Preferred Stock on April 22, 2026, establishing specific rights including a $100,000 liquidation preference per share and non-cumulative dividends at 6.100% fixed rate initially. This filing amends the company's articles of incorporation and modifies security holder rights by introducing restrictions that limit payments on junior securities if Series L dividends are unpaid. Concurrently, CSC entered the Underwriting Agreement on April 20, 2026, committing to sell 1,500,000 Depositary Shares—each a 1/100th interest in the underlying preferred—to a syndicate of leading investment banks at $990 per share. The Deposit Agreement with Equiniti Trust Company formalizes the depositary receipt structure, giving holders proportional rights to dividends, voting, redemption, and liquidation. For investors, this perpetual Tier 1-like capital raise strengthens CSC's capital structure while the reset rate mechanism provides market-linked protection post-2031, though non-cumulative nature means skipped dividends do not accrue.