Filed Pursuant to Rule 433
Dated July 19, 2010
Registration Statement: No. 333-156152
The Charles Schwab Corporation
$600,000,000
4.45% SENIOR NOTES DUE 2020
SUMMARY OF TERMS
| Issuer: | The Charles Schwab Corporation, a Delaware corporation | |
| Expected Ratings*: | A2/A/A (Moody’s/S&P/Fitch) | |
| Title of Securities: | 4.45% Senior Notes due 2020 | |
| Aggregate Principal Amount: | $600,000,000 | |
| Trade Date: | July 19, 2010 | |
| Settlement Date: | July 22, 2010 (T+3) | |
| Maturity Date: | July 22, 2020 | |
| Coupon: | 4.45% per annum | |
| Interest Payment Dates: | January 22 and July 22, commencing on January 22, 2011 | |
| Benchmark US Treasury: | 3.50% UST due 05/2020 | |
| Benchmark US Treasury Price/Yield: | $104-16+ / 2.966% | |
| Re-offer Spread to Benchmark Treasury: | T+150 basis points | |
| Re-offer Yield: | 4.466% | |
| Make-whole Call: | Treasury Rate plus 25 basis points | |
| Price to Public: | 99.872% | |
| Gross Proceeds to CSC: | $599,232,000 | |
| Underwriting Commission per note paid by CSC: | 0.65% | |
| Aggregate Underwriting Commission paid by CSC: | $3,900,000 | |
| Net Proceeds to CSC (after underwriting discounts or commissions): | $595,332,000 | |
| CUSIP/ISIN: | 808513AD7 / US808513AD76 | |
| Sole Book-Running Manager: | J.P. Morgan Securities Inc. (50%) | |
| Joint Lead Managers: | Citigroup Global Markets Inc. (15%) UBS Securities LLC (15%) | |
| Co-Managers: | Credit Suisse Securities (USA) LLC (10%) Wells Fargo Securities, LLC (10%) | |
| * | A securities rating is not a recommendation to buy, sell or hold securities and should be evaluated independently of any other rating. The rating is subject to revision or withdrawal at any time by the assigning rating agency. |
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities Inc. collect at 212-834-4533.
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