The Goldman Sachs Group, Inc. announced on July 20, 2026, a proposed public offering of depositary shares, each representing a 1/25th interest in a new series of its Fixed-Rate Reset Non-Cumulative Preferred Stock, Series AA. This offering is currently subject to pricing, which has not yet occurred.
The company indicates that if the offering is priced and proceeds to closing, it plans to use a portion of the net proceeds to redeem all of its outstanding 3.65% Fixed-Rate Reset Non-Cumulative Preferred Stock, Series U. The Series U preferred stock has a $25,000 liquidation preference per share. Goldman Sachs had previously issued 30,000 shares of this Series U stock in July 2021, which becomes redeemable at the firm's option on or after August 10, 2026.
The decision to redeem the Series U Preferred Stock is not yet final and is contingent on the successful pricing and closing of the new Series AA offering, as well as market conditions. The company has emphasized that this announcement does not constitute a notice of redemption. Any redemption would be announced via press release and an appropriate notice.
This move by Goldman Sachs signals a potential adjustment in its capital structure, aiming to take advantage of current market conditions. The Series U preferred stock currently pays a fixed annual rate of 3.65% until August 10, 2026, after which the dividend rate would reset. Other recent redemption activities by Goldman Sachs include the redemption of Series Q, Series R, and Series S preferred stocks on February 10, 2026, for $1,000 per depositary share.
