By Cristal Cody
Chicago, June 8 – Bank of New York Mellon Corp. priced $1.95 billion of fixed-to-floating-rate notes in three parts on Wednesday, a market source reported.
The bank sold $700 million of notes in a three-year tranche. The coupon starts at 3.43% and resets to SOFR plus 56.5 basis points.
The tranche priced with a 65 bps spread, low to talk in the 90 bps area.
There are two years of call protection.
The smallest tranche priced with a six-year tenor. BNY sold $500 million of notes that start with a 3.992% coupon that resets to SOFR plus 115.1 bps.
The spread priced out as 95 bps to the benchmark Treasury against talk in the 120 bps area.
There are five years of call protection.
The longest-dated part of the transaction priced as $750 million of 11-year notes. The coupon starts at 4.289% and resets to SOFR plus 141.8 bps.
The spread priced as 125 bps over Treasuries after initial talk in the 155 bps area.
There are 10 years of call protection.
Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BNY Mellon Capital Markets, LLC are listed as bookrunners.
Bank of New York Mellon is a financial products and services company based in New York.
| Issuer: | Bank of New York Mellon Corp.
|
| Amount: | $1.95 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Bookrunners: | Barclays, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and BNY Mellon Capital Markets, LLC
|
| Trustee: | Deutsche Bank Trust Co. Americas
|
| Counsel to issuer: | Sullivan & Cromwell LLP
|
| Counsel to underwriters: | Cleary Gottlieb Steen & Hamilton LLP
|
| Trade date: | June 8
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $700 million
|
| Maturity: | June 13, 2025
|
| Coupon: | 3.43% starting rate; resets to SOFR plus 56.5 bps
|
| Spread: | Treasuries plus 65 bps
|
| Call features: | Two years
|
| Price talk: | Treasuries plus 90 bps area
|
|
|
| Six-year notes
|
| Amount: | $500 million
|
| Maturity: | June 13, 2028
|
| Coupon: | 3.992% starting rate; resets to SOFR plus 115.1 bps
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Five years
|
| Price talk: | Treasuries plus 120 bps area
|
|
|
| 11-year notes
|
| Amount: | $750 million
|
| Maturity: | June 13, 2033
|
| Coupon: | 4.289% starting rate; resets to SOFR plus 141.8 bps
|
| Spread: | Treasuries plus 125 bps
|
| Call features: | 10 years
|
| Price talk: | Treasuries plus 155 bps area
|
|
|
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