BNY Mellon Succeeds with Public Offering of Depositary Shares
The Bank of New York Mellon Corporation (NYSE: BK), commonly known as BNY, is excited to confirm the successful pricing of its latest underwritten public offering. This strategic move involves the issuance of 20 million depositary shares, each representing a 1/4,000th interest in a share of the Series K Noncumulative Perpetual Preferred Stock. The market should take note, as these shares carry a liquidation preference of $100,000 per share, effectively translating to a public offering price of $25 per depositary share, culminating in a substantial total of $500 million.
Details of the Offering
From the original issue date, dividends will accrue on the liquidation amount of $100,000 per preferred share, which equates to $25 for each depositary share. The specified rate is 6.150% per annum until a designated reset date. Following this initial period, dividends will reset according to the five-year treasury rate plus 2.161%. Importantly, dividends will only be disbursed when declared by BNY’s board of directors and only if sufficient legal funds are available.
Moreover, any time after the reset date, including March 20, 2030, BNY retains the option to redeem the Series K preferred stock in whole or in part. The cash redemption price will be equivalent to $100,000 per share, plus any accrued and unpaid dividends, thus ensuring a structured return for investors.
Involved Financial Institutions
This offering has garnered attention, with key players like Morgan Stanley & Co. LLC, UBS Investment Bank, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, RBC Capital Markets, LLC, and BNY Mellon Capital Markets, LLC stepping in as joint book-running managers. The expected closing date for this offering is set, demonstrating BNY's active engagement in capital markets.
Application of Proceeds
BNY plans to allocate the net proceeds from this public offering towards general corporate purposes, ensuring the company's financial strength and flexibility. Such strategic resource allocation will bolster BNY’s ongoing initiatives aimed at supporting both clients and growth opportunities in the financial services sector.
Regulatory Filings and Investor Considerations
To keep investors informed, BNY has filed a shelf registration statement and preliminary prospectus with relevant regulatory bodies. This includes a comprehensive overview of the offering details along with associated risks. Investors are encouraged to review these documents to gain insights into the securities being offered and potential implications.
About BNY Mellon
BNY Mellon stands tall as a global financial powerhouse, renowned for its commitment to managing, moving, and safeguarding money. With over 240 years of experience, BNY has a proven track record of aiding its clients in achieving their financial aspirations. Today, the company proudly serves a majority of Fortune 100 companies and holds partnerships with over 90% of the top global banks, showcasing its integral role in the financial ecosystem.
As of the end of the previous year, BNY oversees a staggering $52.1 trillion in assets under custody or administration, alongside $2.0 trillion in assets under management, reflecting its capabilities and the trust placed in it by clients worldwide.
Headquartered in New York City, BNY employs a global workforce exceeding 50,000. Its reputation for excellence is reinforced by accolades such as being listed in Fortune's World’s Most Admired Companies.
Frequently Asked Questions
What is the total amount of the public offering by BNY?
BNY has priced its public offering at $500 million, spanning 20 million depositary shares.
What type of financial instrument is being offered?
The offering consists of depositary shares, each representing a fractional interest in preferred stock.
What is the dividend rate for the Series K preferred stock?
The Series K preferred stock has an initial dividend rate of 6.150% per annum.
Who are the joint book-running managers for this offering?
The offering includes key financial institutions such as Morgan Stanley and UBS Investment Bank among others.
Where can investors access the related regulatory documents?
Investors can find these documents through the SEC's EDGAR database.
