BNY Mellon to price $1,000-par fixed-to-floating rate preferreds

By Stephanie N. Rotondo

Seattle, July 25 – Bank of New York Mellon Corp. is offering $1,000-par series F fixed-to-floating rate noncumulative perpetual preferred stock, according to a prospectus filed with the Securities and Exchange Commission on Monday.

BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, UBS Securities LLC and BNY Mellon Capital Markets LLC are the joint bookrunners.

Dividends will be set at a fixed rate through Sept. 20, 2026 and will be paid on a semiannual basis. After Sept. 20, 2026, the rate will float at Libor plus a spread and will be paid on a quarterly basis.

The preferreds become redeemable Sept. 20, 2026 at par plus accrued dividends. The issue can also be redeemed in whole within 90 days of a regulatory capital treatment event.

The securities will not be listed on any exchange.

Proceeds will be used to fund a common stock repurchase plan of up to $560 million. The repurchases will be proportionally reduced should the New York-based financial services firm sell less than $750 million of the new preferreds.

Any remaining funds will be used for general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.