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UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM 8-KCURRENT REPORTPursuant to Section 13 or 15(d)of The Securities Exchange Act of 1934Date of Report (Date of earliest event reported): March 29, 2021The Charles Schwab Corporation(Exact name of registrant as specified in its charter)Commission File Number: 1-9700Delaware94-3025021(State or other jurisdictionof incorporation)(I.R.S. EmployerIdentification No.)3000 Schwab Way, Westlake, TX 76262(Address of principal executive offices, including zip code)(817) 859-5000(Registrant’s telephone number, including area code)N/A(Former name or former address, if changed since last report)Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of thefollowing provisions: Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))Securities registered pursuant to Section 12(b) of the Act:Title of each classCommon Stock – .01 par value per shareDepositary Shares, each representing a 1/40thownership interest in a share of 6.00% NonCumulative Preferred Stock, Series CDepositary Shares, each representing a 1/40thownership interest in a share of 5.95% NonCumulative Preferred Stock, Series DTradingSymbol(s)Name of each exchangeon which registeredSCHWSCHW PrCNew York Stock ExchangeNew York Stock ExchangeSCHW PrDNew York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of thischapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).Emerging growth company If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with anynew or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Introductory NoteOn March 30, 2021, The Charles Schwab Corporation (“CSC”) issued and sold 24,000,000 depositary shares (“Depositary Shares”), each representing a1/40th ownership interest in a share of 4.450% non-cumulative perpetual preferred stock, Series J, 0.01 par value per share, with a liquidationpreference of 1,000 per share (equivalent to 25 per Depositary Share) (the “Series J Preferred Stock”). The net proceeds of the offering of the24,000,000 Depositary Shares were approximately 583,500,000, after deducting underwriting discounts and commissions and estimated offeringexpenses. This issuance is referred to as the “Preferred Issuance.”Item 3.03Material Modification to Rights of Security HoldersIn connection with the Preferred Issuance, CSC filed a Certificate of Designations (the “Certificate of Designations”) with the Secretary of State of theState of Delaware, establishing the voting rights, powers, preferences and privileges, and the relative, participating, optional or other rights, and thequalifications, limitations or restrictions thereof, of the Series J Preferred Stock on March 29, 2021. Holders of the Depositary Shares will be entitled toall proportional rights and preferences of the Series J Preferred Stock (including dividend, voting, redemption and liquidation rights).Under the terms of the Series J Preferred Stock, the ability of CSC to pay dividends on, make distributions with respect to, or to repurchase, redeem oracquire its common stock, nonvoting common stock or any preferred stock ranking on parity with or junior to the Series J Preferred Stock, is subject torestrictions in the event that CSC does not declare and either pay or set aside a sum sufficient for payment of dividends on the Series J Preferred Stockfor the immediately preceding dividend period.The terms of the Series J Preferred Stock are more fully described in the Certificate of Designations which is included as Exhibit 3.1 to this CurrentReport on Form 8–K and is incorporated by reference herein.Item 5.03Amendments to Articles of Incorporation or Bylaws; Change in Fiscal YearThe Certificate of Designations became effective upon filing with the Secretary of State of the State of Delaware. The terms of the Series J PreferredStock are more fully described in the Certificate of Designations which is included as Exhibit 3.1 to this Current Report on Form 8–K and isincorporated by reference herein.Item 8.01Other EventsPreferred Underwriting Agreement and other Preferred Issuance InformationOn March 23, 2021, in connection with the Preferred Issuance, CSC entered into an Underwriting Agreement (the “Preferred Underwriting Agreement”)with BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities,LLC as the representatives of the several underwriters named therein (collectively, the “Preferred Underwriters”), under which CSC agreed to sell to thePreferred Underwriters 24,000,000 shares of Depositary Shares, each representing a 1/40th ownership interest in a share of Series J Preferred Stock.The Preferred Underwriting Agreement contains customary representations, warranties and agreements of CSC, conditions to closing, indemnificationrights and obligations of the parties, and termination provisions. Under the terms of the Preferred Underwriting Agreement, CSC agreed to indemnifythe Preferred Underwriters against certain specified types of liabilities, including liabilities under the Securities Act of 1933, as amended, and tocontribute to payments the Preferred Underwriters may be required to make in respect of these liabilities.
The offering was made pursuant to the prospectus supplement dated March 23, 2021 and the accompanying prospectus dated December 4, 2020, filedwith the Securities and Exchange Commission pursuant to CSC’s effective registration statement on Form S-3 (File No. 333-251156) (the “RegistrationStatement”).Copies of (a) the Preferred Underwriting Agreement, (b) the Certificate of Designations to which the Form of Certificate Representing the Series JPreferred Stock is attached as Exhibit A, (c) the Deposit Agreement, dated March 30, 2021, between CSC and Equiniti Trust Company, as Depositary,to which the Form of Depositary Share Receipt is attached as Exhibit A and (d) a validity opinion with respect to the Depositary Shares and the Series JPreferred Stock are attached as Exhibits 1.1, 3.1, 4.1 and 5.1, respectively, to this Current Report on Form 8-K and are incorporated by reference intoCSC’s Registration Statement.Use of Proceeds to Redeem Series C Preferred Stock and Corresponding Depositary SharesCSC intends to use the net proceeds from the Preferred Issuance to redeem all of the outstanding shares of the non-cumulative perpetual preferred stock,Series C (“Series C Preferred Stock”) and the corresponding depositary shares, each representing an interest in a share of Series C Preferred Stock. Inaccordance with the Certificate of Designations for the Series C Preferred Stock, such shares may only be redeemed on a dividend payment date andnotice of the redemption must be given not less than 30 days nor more than 60 days prior to the redemption date. CSC intends to give notice that it willredeem, on June 1, 2021, all of the Series C Preferred Stock and the corresponding depositary shares, and expects to provide that notice in April 2021.This disclosure does not constitute notice of redemption with respect to the Series C Preferred Stock or the corresponding depositary shares.Item 9.01Financial Statements and Exhibits(d)Exhibits1.1Underwriting Agreement, dated March 23, 2021, by and among CSC and BofA Securities, Inc., Credit Suisse Securities (USA) LLC, J.P.Morgan Securities LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC as the representatives of the several underwritersnamed therein.3.1Certificate of Designations of 4.450% Non-Cumulative Perpetual Preferred Stock, Series J, dated March 29, 2021, of CSC (including theform of 4.450% Non-Cumulative Perpetual Preferred Stock, Series J Certificate of CSC attached as Exhibit A thereto).4.1Deposit Agreement, dated March 30, 2021, between CSC and Equiniti Trust Company, as Depositary (including the form of DepositaryShare Receipt attached as Exhibit A thereto).5.1Opinion of Arnold & Porter Kaye Scholer LLP, dated March 30, 2021.23.1Consent of Arnold & Porter Kaye Scholer LLP, dated March 30, 2021 (included in Exhibit 5.1).104Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tagsare embedded within the Inline XBRL document.
Signature(s)Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by theundersigned hereunto duly authorized.THE CHARLES SCHWAB CORPORATIONDate: March 30, 2021By:/s/ Peter CrawfordPeter CrawfordExecutive Vice President and Chief Financial Officer
Exhibit 1.1Execution VersionTHE CHARLES SCHWAB CORPORATION24,000,000 Depositary Shares, Each Representing a 1/40th Interest in a Share of 4.450% NonCumulative Perpetual Preferred Stock, Series JUNDERWRITING AGREEMENTMARCH 23, 2021
UNDERWRITING AGREEMENTMarch 23, 2021BofA Securities, Inc.Credit Suisse Securities (USA) LLCJ.P. Morgan Securities LLCMorgan Stanley & Co. LLCWells Fargo Securities, LLCas Representatives of theseveral Underwriters namedin Schedule A heretoc/o BofA Securities, Inc.One Bryant ParkNew York, New York 10036c/o Credit Suisse Securities (USA) LLC11 Madison AvenueNew York, New York 10010c/o J.P. Morgan Securities LLC383 Madison AvenueNew York, New York 10179c/o Morgan Stanley & Co. LLC1585 BroadwayNew York, New York 10036c/o Wells Fargo Securities, LLC550 South Tryon StreetCharlotte, North Carolina 28202Ladies and Gentlemen:The Charles Schwab Corporation, a Delaware corporation (the “ Company”), proposes, subject to the terms and conditions stated herein,to issue and sell to the several underwriters named in Schedule A hereto (the “Underwriters”), for whom you are acting as Representatives, 24,000,000depositary shares (the “Depositary Shares”), each such Depositary Share representing a 1/40th interest in a share of its 4.450% Non-CumulativePerpetual Preferred Stock, Series J, par value 0.01 per share, with a liquidation preference of 1,000 per share (equivalent to 25 per depositary share)(the “Preferred Stock”). The Depositary Shares and the Preferred Stock are described in the Prospectus that is referred to below. The Preferred Stock,when issued, will be deposited against delivery of depositary receipts (the “Depositary Receipts”), which will evidence the Depositary Shares and willbe issued by Equiniti Trust Company (the “Depositary”) under a deposit agreement, to be dated March 30, 2021 (the “Deposit Agreement”), among theCompany, the Depositary and the holders from time to time of the Depositary Receipts issued hereunder.
The Preferred Stock is to be issued by the Company pursuant to the provisions of the certificate of designations relating to the PreferredStock (the “Certificate of Designations”) to be filed by the Company with the Secretary of State of the State of Delaware prior to the Closing Date (asdefined below).The Company has prepared and filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules andregulations promulgated thereunder (collectively, the “Act”), with the Securities and Exchange Commission (the “Commission”) an automatic shelfregistration statement on Form S-3 (File No. 333-251156) under the Act (the “registration statement”), including a prospectus, which registrationstatement incorporates by reference documents which the Company has filed, or will file, in accordance with the provisions of the Securities ExchangeAct of 1934, as amended, and the rules and regulations thereunder (collectively, the “Exchange Act”). Such registration statement has become effectiveunder the Act.Except where the context otherwise requires, “Registration Statement”, as used herein, means the registration statement, as amended at thetime of such registration statement’s effectiveness for purposes of Section 11 of the Act, as such section applies to the respective Underwriters (the“Effective Time”), including (i) all documents filed as a part thereof or incorporated or deemed to be incorporated by reference therein, (ii) anyinformation contained or incorporated by reference in a prospectus filed with the Commission pursuant to Rule 424(b) under the Act, to the extent suchinformation is deemed, pursuant to Rule 430B or Rule 430C under the Act, to be part of the registration statement at the Effective Time, and (iii) anyregistration statement filed to register the offer and sale of Depositary Shares pursuant to Rule 462(b) under the Act.The Company has furnished or made available to you, for use by the Underwriters and by dealers in connection with the offering of theDepositary Shares, copies of one or more preliminary prospectus supplements, and the documents incorporated by reference therein, relating to theDepositary Shares and the Preferred Stock. Except where the context otherwise requires, “Pre-Pricing Prospectus ”, as used herein, means each suchpreliminary prospectus supplement, in the form so furnished, including any basic prospectus (whether or not in preliminary form) furnished to you bythe Company and attached to or used with such preliminary prospectus supplement. Except where the context otherwise requires, “Basic Prospectus”, asused herein, means any such basic prospectus attached to or used with the Prospectus Supplement (as defined below).Except where the context otherwise requires, “Prospectus Supplement”, as used herein, means the final prospectus supplement, relating tothe Depositary Shares and the Preferred Stock, filed by the Company with the Commission pursuant to Rule 424(b) under the Act on or before thesecond business day after the date hereof (or such earlier time as may be required under the Act), in the form furnished by the Company to you for useby the Underwriters and by dealers in connection with the offering of the Depositary Shares.-2-
Except where the context otherwise requires, “Prospectus”, as used herein, means the Prospectus Supplement together with the BasicProspectus attached to or used with the Prospectus Supplement.“Permitted Free Writing Prospectuses”, as used herein, means the documents listed on Schedule B attached hereto and each “roadshow” (as defined in Rule 433 under the Act), if any, related to the offering of the Depositary Shares contemplated hereby that is a “writtencommunication” (as defined in Rule 405 under the Act). Each Underwriter severally covenants and agrees with the Company that such Underwriter hasnot offered or sold and will not offer or sell, without the Company’s consent, any Depositary Shares or Preferred Stock by means of any “free writingprospectus” (as defined in Rule 405 under the Act) that is required to be filed by the Underwriters with the Commission pursuant to Rule 433 under theAct, other than a Permitted Free Writing Prospectus.“Covered Free Writing Prospectuses”, as used herein, means (i) each “issuer free writing prospectus” (as defined in Rule 433(h)(1) underthe Act), if any, relating to the Depositary Shares or Preferred Stock, which is not a Permitted Free Writing Prospectus and (ii) each Permitted FreeWriting Prospectus.“Disclosure Package”, as used herein, means any Pre-Pricing Prospectus together with any combination of one or more of the PermittedFree Writing Prospectuses, if any, as of the Applicable Time.“Applicable Time” means 2:50 p.m., New York City time, on the date of this Agreement.Any reference herein to the Registration Statement, any Basic Prospectus, any Pre-Pricing Prospectus, the Prospectus Supplement, theProspectus or any Permitted Free Writing Prospectus shall be deemed to refer to and include the documents, if any, incorporated by reference, ordeemed to be incorporated by reference, therein (the “Incorporated Documents”), including, unless the context otherwise requires, the documents, ifany, filed as exhibits to such Incorporated Documents. Any reference herein to the terms “amend”, “amendment” or “supplement” with respect to theRegistration Statement, any Basic Prospectus, any Pre-Pricing Prospectus, the Prospectus Supplement, the Prospectus or any Permitted Free WritingProspectus shall be deemed to refer to and include the filing of any document under the Exchange Act on or after the initial effective date of theRegistration Statement, or the date of such Basic Prospectus, such Pre-Pricing Prospectus, the Prospectus Supplement, the Prospectus or such PermittedFree Writing Prospectus, as the case may be, and deemed to be incorporated therein by reference.As used in this Agreement, “ business day” shall mean any day other than a day on which banks are permitted or required to be closed inNew York City. The terms “herein”, “hereof”, “hereto”, “hereinafter” and similar terms, as used in this Agreement, shall in each case refer to thisAgreement as a whole and not to any particular section, paragraph, sentence or other subdivision of this Agreement. The term “or”, as used herein, is notexclusive.-3-
The Company and the Underwriters agree as follows:1. Sale and Purchase.Upon the basis of the representations and warranties and subject to the terms and conditions herein set forth, the Company agrees to issue and sell to therespective Underwriters and each of the Underwriters, severally and not jointly, agrees to purchase from the Company the respective number ofDepositary Shares set forth opposite the name of such Underwriter in Schedule A attached hereto, subject to adjustment in accordance with Section 8hereof, at a purchase price equal to (i) 24.2125 per Depositary Share sold to retail investors and (ii) 24.7500 per Depositary Share sold to institutionalinvestors.The Company is advised by you that the Underwriters intend (i) to make a public offering of their respective portions of the Depositary Shares assoon after the effectiveness of this Agreement as in your judgment is advisable and (ii) initially to offer the Depositary Shares upon the terms set forth inthe Prospectus. You may from time to time increase or decrease the public offering price after the initial public offering to such extent as you maydetermine.Each Underwriter, severally and not jointly, represents and agrees as set forth in Appendix A hereto.2. Payment and Delivery. Payment of the purchase price for the Depositary Shares shall be made to the Company by Federal Funds wire transferagainst delivery of the Depositary Shares to you through the facilities of The Depository Trust Company (“DTC”) for the respective accounts of theUnderwriters. Such payment and delivery with respect to the Depositary Shares shall be made at 10:00 a.m., New York City time, on March 30, 2021(such time being referred to herein as the “Time of Purchase”, and such date being referred to herein as the “Closing Date”) (unless another time shall beagreed to by you and the Company or unless postponed in accordance with the provisions of Section 8 hereof). Electronic transfer of the DepositaryShares shall be made to you at the Time of Purchase in such names and in such denominations as you shall specify.Deliveries of the documents described in Section 6 hereof with respect to the purchase of the Depositary Shares shall be made at theoffices of Simpson Thacher & Bartlett LLP at 425 Lexington Avenue, New York, New York, 10017, at 9:00 a.m., New York City time, on the ClosingDate.3. Representations and Warranties of
The Charles Schwab Corporation (Exact name of registrant as specified in its charter) Commission File Number: 1-9700 Delaware 94-3025021 (State or other jurisdiction of incorporation) (I.R.S. Employer Identification No.) 3000 Schwab Way, Westlake, TX 76262 (Address of princi
