KeyCorp to Redeem All Series E Preferred Stock Shares
KeyCorp has issued formal notice to redeem all 20 million depositary shares of its Series E Fixed-to-Floating Rate Preferred Stock.
KeyCorp, the Cleveland-based financial services company traded on the New York Stock Exchange under the ticker KEY, announced Thursday it has formally notified holders of its intention to redeem the entirety of its Series E Fixed-to-Floating Rate Preferred Stock, according to a company statement.
The redemption covers all 20,000,000 depositary shares currently outstanding, with each depositary share representing a 1/40th ownership interest in one share of the underlying Series E preferred stock. The move signals a deliberate step by KeyCorp to restructure its capital stack, a strategy that larger regional banks have pursued as interest rate conditions shift and regulatory capital requirements evolve.
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Preferred stock redemptions of this scale typically allow an issuer to retire higher-cost capital instruments, particularly fixed-to-floating rate securities that may become more expensive to service once the floating-rate period activates. By acting ahead of or at a call date, the company can replace such obligations with lower-cost funding or retained earnings, potentially improving net interest margins over time.
KeyCorp has not disclosed in this notice the specific redemption date or the per-share redemption price, details that are ordinarily included in the full redemption notice distributed directly to registered holders and depositary agents. Investors holding these depositary shares through brokerage accounts would typically receive notification through their custodians.
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