New Issue: Bank of New York Mellon sells $1.5 billion of fixed-to-floaters due 2029, 2034

By Mary-Katherine Stinson and Cristal Cody

Lexington, Ky., Jan. 25 – Bank of New York Mellon Corp. priced a $1.5 billion offering of fixed-to-floating rate callable senior notes in two parts (A1/A/AA-/DBRS: AA) on Tuesday, according to FWPs filed with the Securities and Exchange Commission.

The first $750 million tranche matures in 2029 and was priced at par, or at a spread of 97 basis points over Treasuries. Price talk was in the 125 bps area.

The 2029 notes have a starting coupon of 4.543%, which converts on Feb. 1, 2028 to SOFR plus 116.868 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 Jan. 2, 2029 until maturity.

The bank also priced a $750 million tranche at par, or at a spread of 125 bps over Treasuries. Price talk was in the 155 bps area.

The 2034 notes have a starting coupon of 4.706%, which converts on Feb. 1, 2033 to SOFR plus 151.178 bps.

As with the 2029 notes, the 2034 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 Nov. 1, 2033 until maturity.

Barclays, BofA Securities, Inc., UBS Securities 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:	$1.5 billion
Issue:	Fixed rate/floating rate callable senior notes
Bookrunners:	Barclays, BofA Securities, Inc., UBS Securities LLC and BNY Mellon Capital Markets, LLC
Co-managers:	ING Financial Markets LLC, MUFG Securities Americas Inc., Scotia Capital (USA) Inc., Great Pacific Securities, Tigress Financial Partners LLC, Cavu Securities, LLC, MFR Securities, Inc., Security Capital Brokerage, Inc. and Zeus Financial, LLC
Trade date:	Jan. 24
Settlement date:	Jan. 31
Ratings:	Moody’s: A1
	S&P: A
	Fitch: AA-
	DBRS: AA
Distribution:	SEC registered
2029 notes
Amount:	$750 million
Maturity:	Feb. 1, 2029
Coupon:	4.543% initial rate; starting Feb. 1, 2028, SOFR plus 116.868 bps, subject to a 0% floor
Price:	Par
Yield:	4.543%
Spread:	Treasuries plus 97 bps
Call options:	In whole, but not in part, at par plus interest on Feb. 1, 2028; in whole, or in part, at par plus interest starting Jan. 2, 2029
Price talk:	Treasuries plus 125 bps area
Cusip:	06406RBN6
2034 notes
Amount:	$750 million
Maturity:	Feb. 1, 2034
Coupon:	4.706% initial rate; starting Feb. 1, 2033, SOFR plus 151.178 bps, subject to a 0% floor
Price:	Par
Yield:	4.706%
Spread:	Treasuries plus 125 bps
Call options:	In whole, but not in part, at par plus interest on Feb. 1, 2033; in whole, or in part, at par plus interest starting Nov. 1, 2033
Price talk:	Treasuries plus 155 bps area
Cusip:	06406RBP1

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