Northern Trust Corporation issued $1.25 billion in new debt on Wednesday, November 19, 2025, comprising $500 million of 4.150% Senior Notes due 2030 and $750 million of 5.117% Fixed‑to‑Fixed Rate Subordinated Notes due 2040. The senior notes are unsecured and mature in 2030, while the subordinated notes carry a fixed rate until November 19, 2035, after which they reset to the five‑year U.S. Treasury rate plus 105 basis points and are redeemable in full on that reset date.
Prior to the issuance, Northern Trust’s long‑term debt stood at $6.942 billion as of September 30, 2025, and total debt was $13.45 billion as of June 2025. The new borrowing increases total debt to roughly $14.7 billion, but the company’s leverage ratio remains comfortably below regulatory thresholds, and the addition of long‑term, low‑cost debt improves the balance sheet’s maturity profile and provides a buffer for future capital needs.
The debt is part of the firm’s “One Northern Trust” transformation, which seeks to modernize operations, accelerate technology investments, and pursue strategic acquisitions. Management cited the mixed third‑quarter earnings and ongoing pressure in the custody‑bank sector as catalysts for the capital raise, arguing that the new funding will give the company flexibility to invest in high‑return initiatives while maintaining strong capital ratios.
Michael O’Grady, Chairman and CEO, said the “One Northern Trust” strategy is designed to “optimize growth, strengthen resiliency, and drive productivity.” He added that the capital raise will support the firm’s focus on digitizing and automating processes, enabling the company to deliver higher value to clients and sustain long‑term profitability.
Northern Trust’s senior debt is rated A+ by S&P and Fitch and A2 by Moody’s, while the subordinated debt carries an A rating from S&P and Fitch and an A2 from Moody’s, all with stable outlooks. The 4.150% and 5.117% coupon rates are competitive for a firm of Northern Trust’s credit profile, and the long‑term maturity of the notes provides a low‑cost financing base that can be leveraged for future growth initiatives.
No immediate market reaction or analyst commentary was reported following the announcement, indicating that investors viewed the transaction as a routine capital‑structure adjustment rather than a headline‑making event.
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