BNY Mellon sells $500 million 4.5% $1,000-par securities; GE Capital's new notes free up

By Stephanie N. Rotondo

Phoenix, May 10 - A preferred stock trader said the market was acting "pretty resilient despite the long [Treasury] bond being off."

New issues continued to trickle out in Friday's session, as Bank of New York Mellon Corp. announced plans to sell $500 million of $1,000-par series D fixed-to-floating rate noncumulative perpetual preferreds.

"It's $500 million and not to grow," a trader said, speculating that all of it would be put away to institutional clients.

The issue priced at 4.5% by the end of the day.

Meanwhile, General Electric Capital Corp.'s $750 million issue of 4.7% $25-par senior notes due 2053 freed to trade early in the session.

The issue came Thursday.

In other recent deals, Capstead Mortgage Corp.'s $150 million of 7.5% series E cumulative redeemable preferreds - a deal that priced Wednesday - were "hovering" around $24.90 bid, $24.95 offered.

BNY Mellon prices

Bank of New York Mellon sold $500 million of 4.5% $1,000-par series D fixed-to-floating rate noncumulative perpetual preferreds on Friday.

At midday, a trader said he had not heard any price talk on the fixed-to-floating securities. He pegged the paper at issue bid in the gray market.

Post-pricing, a source said the issue was at par bid.

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 New York-based financial institution will use the proceeds to redeem $300 million of 7.78% capital securities and for general corporate purposes.

GE Capital notes free

General Electric Capital's $750 million of 4.7% $25-par senior notes due 2053 freed from the syndicate in early Friday trading after pricing late Thursday.

A trader saw the paper at $25.05 bid at midday.

"They've been trading around $25.10 for most of the morning," a trader said.

Another market source said that when the notes freed, the deal was at $24.97 bid. Then the notes rallied "as high as $25.07 bid." By the end of business, the issue had settled back in to $25.02 bid.

GE Capital is a Norwalk, Conn.-based wholly owned subsidiary of General Electric and a provider of a select range of financial services and products.

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