By Cristal Cody
Chicago, Nov. 8 – Bank of New York Mellon Corp. sold $1.3 billion of 3.75% series I non-cumulative perpetual preferred stock at par in the Monday market, according to a market source.
The notes had been talked for a dividend in the 4% to 4.125% area.
The rate will start resetting on Dec. 20, 2026 to Treasuries plus 263 basis points.
The preferreds are non-callable for five years.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and BNY Mellon Capital Markets, LLC are underwriting the offering, according to a 424B2 filing with the Securities and Exchange Commission.
Proceeds will be used to redeem some or all of the series E preferred stock, and any remaining proceeds will be used for general corporate purposes.
Bank of New York Mellon is a financial products and services company based in New York.
| Issuer: | Bank of New York Mellon Corp.
|
| Issue: | Series I non-cumulative perpetual preferred stock
|
| Amount: | $1.3 billion
|
| Maturity: | Perpetual
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC and BNY Mellon Capital Markets, LLC
|
| Counsel to issuer: | In-house
|
| Counsel to bookrunners: | Cleary Gottlieb Steen & Hamilton LLP
|
| Dividend: | 3.75% starting rate; resets starting Dec. 20, 2026 to Treasuries plus 263 bps
|
| Price: | Par
|
| Yield: | 3.75%
|
| Call features: | Five years of call protection
|
| Trade date: | Nov. 8
|
| Distribution: | SEC registered
|
| Price talk: | 4% to 4.125% area
|
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