U.S. markets open in 1 hour 10 minutes
  • S&P Futures

    4,177.75
    +6.25 (+0.15%)
     
  • Dow Futures

    33,478.00
    0.00 (0.00%)
     
  • Nasdaq Futures

    13,674.75
    +31.25 (+0.23%)
     
  • Russell 2000 Futures

    1,783.10
    +2.10 (+0.12%)
     
  • Crude Oil

    72.63
    -0.20 (-0.27%)
     
  • Gold

    1,977.30
    -7.60 (-0.38%)
     
  • Silver

    23.73
    -0.17 (-0.72%)
     
  • EUR/USD

    1.0821
    -0.0023 (-0.22%)
     
  • 10-Yr Bond

    3.5810
    0.0000 (0.00%)
     
  • Vix

    16.81
    -1.18 (-6.56%)
     
  • GBP/USD

    1.2440
    -0.0049 (-0.39%)
     
  • USD/JPY

    137.8240
    +0.2880 (+0.21%)
     
  • Bitcoin USD

    27,435.06
    +685.79 (+2.56%)
     
  • CMC Crypto 200

    604.40
    +5.55 (+0.93%)
     
  • FTSE 100

    7,760.83
    +37.60 (+0.49%)
     
  • Nikkei 225

    30,573.93
    +480.34 (+1.60%)
     

Charles Schwab to raise $2.5 billion through debt offering

FILE PHOTO: The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

(Reuters) -Brokerage firm Charles Schwab Corp said on Thursday it was looking to raise up to $2.5 billion through a debt offering.

The company will raise the debt in two parts via notes due in 2029 and 2034.

The disclosure comes a day after another filing with the U.S. Securities and Exchange Commission, in which the brokerage firm said it would use the proceeds for "general corporate purposes."

Schwab did not respond to a request seeking additional comment.

Yield-to-maturity on the 2029 and 2034 notes would be 205 basis points and 227 basis points higher than those on the benchmark, risk-free Treasury notes, respectively.

Shares of the company were down 1.4% at $51.10 in premarket trading, while most other financial stocks were climbing.

Last month, Schwab reported first-quarter profit ahead of analysts' expectations, boosted by growth in interest income. Its chief executive officer, Walter Bettinger, also allayed concerns about its financial strength.

BofA Securities, Citigroup, Credit Suisse, Goldman Sachs & Co LLC, J.P. Morgan and Wells Fargo Securities are the joint book-running managers for the offering.

(Reporting by Niket Nishant in Bengaluru; Editing by Savio D'Souza and Maju Samuel)