By Stephanie N. Rotondo
Phoenix, May 10 - The Bank of New York Mellon Corp. priced an offering of $500 million of 4.5% $1,000-par series D fixed-to-floating rate noncumulative perpetual preferred stock, a market source reported on Friday.
The preferreds will be issued as depositary shares representing a 1/100th interest.
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC and BNY Mellon Capital Markets LLC are the joint bookrunning managers.
When declared, a fixed-rate dividend will be paid on the 20th day of June and December. Beginning June 20, 2023, the dividend will begin floating a Libor plus 246 basis points.
Once floating, the dividends will be payable on the 20th day of March, June, September and December.
The preferreds become redeemable on or after June 20, 2023 or within 90 days of a regulatory capital treatment event. The call price is par plus accrued dividends.
The New York-based financial institution will use proceeds to redeem $300 million of 7.78% capital securities and for general corporate purposes.
| Issuer: | The Bank of New York Mellon Corp.
|
| Securities: | Series D fixed-to-floating rate noncumulative preferred stock
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| Amount: | $500 million
|
| Maturity: | Perpetual
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| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., UBS Securities LLC, BNY Mellon Capital Markets LLC
|
| Dividend: | 4.5%; begins floating on June 20, 2023 at Libor plus 246 bps
|
| Price: | Par of $1,000
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| Yield: | 4.5%
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| Call options: | On or after June 20, 2023 or within 90 days of a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | May 10
|
| Settlement date: | May 17
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