By Andrea Heisinger
New York, Feb. 13 - Bank of New York Mellon Corp. sold $1.25 billion of bonds (Aa2/A+/AA-) in two parts on Monday, a market source said.
The $750 million of 1.2% three-year notes sold at 99.909 to yield 1.231% with a spread of Treasuries plus 85 basis points. This was at the tight end of guidance in the 90 bps area.
The notes can be called starting on Jan. 20, 2015 at the redemption price of the principal amount of notes redeemed plus accrued and unpaid interest, according to an FWP filing with the Securities and Exchange Commission.
The bank also reopened its issue of 3.55% notes due in September 2021 to add $500 million. Those notes priced at 103.338 to yield 3.141% with a spread of Treasuries plus 115 bps. The tranche also was sold at the low end of guidance in the 120 bps area.
Total issuance is $1.5 billion, including $1 billion priced on Sept. 16, 2011 at Treasuries plus 148 bps.
The reopened notes are callable starting on Aug. 23, 2021 at the redemption price of the principal amount of notes redeemed plus accrued and unpaid interest.
Barclays Capital Inc., BNY Mellon Capital Markets LLC and Goldman Sachs & Co. were the bookrunners.
Co-managers were GreenTree Brokerage Services Inc., HSBC Securities (USA) Inc., MFR Securities Inc., Muriel Siebert & Co., Inc., Natixis Securities Americas LLC and Wells Fargo Securities LLC.
The Bank of New York was last in the market with a $1.25 billion deal in three tranches on Nov. 17, 2011. The 1.7% three-year notes from that deal sold at 135 bps over Treasuries.
The financial services company is based in New York City.
| Issuer: | Bank of New York Mellon Corp.
|
| Issue: | Senior notes
|
| Amount: | $1.25 billion
|
| Bookrunners: | Barclays Capital Inc., BNY Mellon Capital Markets LLC, Goldman Sachs & Co.
|
| Co-managers: | GreenTree Brokerage Services Inc., HSBC Securities (USA) Inc., MFR Securities Inc., Muriel Siebert & Co., Inc., Natixis Securities Americas LLC, Wells Fargo Securities LLC
|
| Trade date: | Feb. 13
|
| Settlement date: | Feb. 21
|
| Ratings: | Moody's: Aa2
|
| Standard & Poor's: A+
|
| Fitch: AA-
|
|
|
| Three-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 20, 2015
|
| Coupon: | 1.2%
|
| Price: | 99.909
|
| Yield: | 1.231%
|
| Spread: | Treasuries plus 85 bps
|
| Call: | Starting on Jan. 20, 2015
|
| Price talk: | 90 bps area
|
|
|
| Notes due 2021
|
| Amount: | $500 million, reopened
|
| Maturity: | Sept. 23, 2021
|
| Coupon: | 3.55%
|
| Price: | 103.338
|
| Yield: | 3.141%
|
| Spread: | Treasuries plus 115 bps
|
| Call: | Starting on Aug. 23, 2021
|
| Total issuance: | $1.5 billion, including $1 billion priced at 148 bps on Sept. 16, 2011
|
| Price talk: | 120 bps area
|
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