KeyCorp Announces Redemption of Series D Preferred Stock

What Happened
KeyCorp (NYSE: KEY) announced on August 14, 2026 that it will redeem all outstanding Series D Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Stock on September 15, 2026. There are 525,000 depositary shares outstanding (each representing a 1/25th interest in a preferred share), which correspond to 21,000 preferred shares with an aggregate liquidation preference of $525,000,000. The redemption price is $25,312.50 per preferred share ($1,012.50 per depositary share) — the $25,000 liquidation preference plus accumulated and unpaid dividends through the redemption date. All shares are held in book-entry form through the Depository Trust Company (DTC) and will be redeemed in accordance with DTC procedures. Upon redemption, the preferred shares will no longer be outstanding and related rights (other than the right to payment) will terminate.

Key Details

• Notice date: August 14, 2026; Redemption date: September 15, 2026.
• Outstanding: 525,000 depositary shares = 21,000 preferred shares; aggregate liquidation preference = $525,000,000.
• Redemption price: $25,312.50 per preferred share ($1,012.50 per depositary share) = liquidation preference + accrued/unpaid dividends through redemption.
• Shares held in DTC book-entry; redemption to follow DTC procedures; post-redemption rights (except payment) terminate.

Why It Matters
This action eliminates KeyCorp’s Series D preferred stock from its outstanding capital instruments and ends future dividend obligations on this series after the redemption date. The company will pay cash equal to the liquidation preference plus any accumulated dividends (the filing does not state the total accrued dividend amount), meaning at least $525 million of principal plus accrued dividends will be paid to depositary holders. Retail investors should note this affects the company’s preferred-capital balance and that holders of the depositary shares will receive cash per the stated redemption price.