KEYCORP PROVIDES NOTICE OF REDEMPTION OF SERIES D PREFERRED STOCK
KeyCorp (NYSE: KEY) said it issued notice to redeem all 525,000 depositary shares, each representing 1/25th of its Series D Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock, on Sept. 15, 2026. The redemption price is $25,312.50 per preferred share ($1,012.50 per depositary share), equal to liquidation preference plus accrued dividends.
How this was made
The 30-second read
Why it matters
The defined redemption date and price reduce uncertainty for preferred investors and remove the preferred instrument from the capital stack after Sept. 15, 2026.
Market read
This is a scheduled, mechanics-driven capital action with a known cash redemption amount and date, most relevant to preferred pricing rather than common equity fundamentals.
What to watch
Traders may focus more on how the redemption is funded (cash vs. refinancing) and whether it coincides with other capital actions, which are not detailed here.
Background
KeyCorp’s Series D fixed-to-floating rate perpetual non-cumulative preferred stock is being redeemed via DTC procedures, with Computershare as redemption agent.
Ticker impact
KeyCorp announced it will redeem all 525,000 depositary shares of its Series D preferred stock on September 15, 2026 for $1,012.50 per depositary share.
Near-term impact is likely limited for common shares, but preferred holders may reprice ahead of the redemption; common may see modest sentiment from reduced preferred obligations.
The article provides concrete redemption mechanics (date, per-share price, total outstanding) but no change to earnings outlook or credit metrics, so the common-stock trading signal is likely secondary.
Market effects
Routine bank preferred redemption can marginally affect sector preferred spreads, but this is not a sector-wide shock.
No clear regional spillover beyond local bank capital-structure optics.
Limited global relevance; this is a single-issuer capital action.
Counterpoint
Because the redemption price equals liquidation preference plus accrued dividends, the event may be largely priced in for preferred instruments, leaving common shares with minimal incremental signal.
Key entities
- companyKeyCorp
Issuer of the Series D Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock being redeemed.
- securitySeries D Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock
Redeemed instrument; redemption price equals liquidation preference plus accumulated and unpaid dividends through the redemption date.
- service_providerComputershare
Transfer agent and redemption agent for the preferred stock.
- market_infrastructureDTC
Depository system through which the depositary shares are held and redeemed.
