Schwab Moves to Raise Debt After News of Job, Office Cuts

Charles Schwab Corp. is looking to raise fresh debt in the U.S. investment-grade bond market, after revealing plans to cut jobs and close or downsize offices to curb costs.

The financial services firm brought a benchmark-sized deal of senior unsecured notes Tuesday, according to a person familiar with the matter, who asked not to be identified as the details are private.

Initial pricing discussions for the longest dated portion of the sale, an 11-year fixed-to-floating rate note, may yield in the area of 2.05 percentage points over Treasuries, the person said.

Westlake, Texas-based Schwab, which operates both brokerage and bank businesses, intends to use the sale proceeds for general corporate purposes.

See: Schwab to Lay Off Staff, Close Offices to Save $500M a Year

The firm last tapped capital markets in May, selling a $2.5 billion blue-chip bond. That marked the firm’s first debt issuance since a series of regional bank failures rattled the broader banking industry, beginning in March.