New Issue: Bank of New York Mellon prices $2.5 billion of fixed-to-floaters due 2028, 2033

By William Gullotti and Cristal Cody

Buffalo, N.Y., Oct. 19 – Bank of New York Mellon Corp. priced a $2.5 billion offering of fixed-to-floating rate callable senior notes in two parts (A1/A/AA-/DBRS: AA) on Tuesday, according to FWP filings with the Securities and Exchange commission and additional information from a market source.

The first $1 billion tranche matures in 2028 and was priced at par, or a spread of 160 basis points over Treasuries. Pricing was tight to initial talk in the Treasuries plus 185 bps area.

The 2028 notes have a starting coupon of 5.802%, which converts on Oct. 25, 2027 to SOFR plus 180.2 bps. The series is callable in whole, but not in part, on the interest conversion date at par plus interest. The bank may also call the notes in whole, or in part, at par plus interest from Sept. 25, 2028 until maturity.

The bank also priced a $1.5 billion tranche at par, or a spread of 185 bps over Treasuries. The 2033-maturing notes also priced tight to initial talk in the Treasuries plus 215 bps area.

The 2033 notes have a starting coupon of 5.834%, which converts on Oct. 25, 2032 to SOFR plus 204.7 bps. As with the 2028 notes, the 2033 notes are also callable in whole, but not in part, on the interest conversion date at par plus interest. The notes are also callable in whole, or in part, at par plus interest from July 25, 2033 until maturity.

Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Loop Capital Markets LLC and BNY Mellon Capital Markets, LLC were the 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:	$2.5 billion
Issue:	Fixed rate/floating rate callable senior notes
Bookrunners:	Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Loop Capital Markets LLC and BNY Mellon Capital Markets, LLC
Co-managers:	Blaylock Van, LLC, DZ Financial Markets LLC, Nabsecurities, LLC, R. Seelaus & Co., LLC, Stern Brothers & Co. and Telsey Advisory Group, LLC
Trade date:	Oct. 18
Settlement date:	Oct. 25
Ratings:	Moody’s: A1
	S&P: A
	Fitch: AA-
	DBRS: AA
Distribution:	SEC registered
2028 notes
Amount:	$1 billion
Maturity:	Oct. 25, 2028
Coupon:	5.802% per year; starting Oct. 25, 2027, SOFR plus 180.2 bps, subject to floor of 0%
Price:	Par
Yield:	5.802%
Spread:	Treasuries plus 160 bps
Call options:	In whole, but not in part, at par plus interest on Oct. 25, 2027; in whole, or in part, at par plus interest starting Sept. 25, 2028
Price talk:	Treasuries plus 185 bps area
Cusip:	06406RBL0
2033 notes
Amount:	$1.5 billion
Maturity:	Oct. 25, 2033
Coupon:	5.834% per year; starting Oct. 25, 2032, SOFR plus 207.4 bps, subject to floor of 0%
Price:	Par
Yield:	5.834%
Spread:	Treasuries plus 185 bps
Call options:	In whole, but not in part, at par plus interest on Oct. 25, 2032; in whole, or in part, at par plus interest starting July 25, 2033
Price talk:	Treasuries plus 215 bps area
Cusip:	06406RBM8

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