BNY Mellon sells $582.5 million preferreds; Fulton improves; Wells Fargo, U.S. Bancorp soften

By Cristal Cody

Tupelo, Miss., Oct. 26 – Bank of New York Mellon Corp. tapped the preferred stock market on Monday with $582.5 million of noncumulative perpetual preferred shares.

The preferreds priced tighter than talk in the 3.875% area, a source said.

Otherwise, activity was light with stocks down on Monday as coronavirus infections resurged in the United States and Europe.

The Wells Fargo Hybrid and Preferred Securities index declined 11.76 points, or 0.47%, to 2497.16 over the day.

The U.S. iShares Preferred Stock ETF fell 32 cents, or 0.86%, to $36.75 by the close.

The Dow Jones industrial average closed the day down 2.29%, while the S&P 500 ended off 1.86%.

BNY Mellon sells preferreds

Bank of New York Mellon priced $582.5 million of 3.7% series H $1,000-par noncumulative perpetual preferred shares (Baa1/BBB/BBB+) in the offering on Monday, according to an FWP filing with the Securities and Exchange Commission.

The dividend on the preferreds will reset March 20, 2026 to a rate of Treasuries plus 335.2 basis points.

Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, RBC Capital Markets LLC and BNY Mellon Capital Markets LLC were the bookrunners.

Bank of New York Mellon is a financial products and services company based in New York.

Financials mixed

In the secondary market, new financial preferred stocks were mixed over the day.

Fulton Financial Corp.’s $200 million of 5.125% series A fixed-rate non-cumulative perpetual preferred stock improved on Monday.

The preferreds, traded under the temporary symbol “FULPP,” climbed to $25.70 on volume of about 309,000 shares.

The $25-par preferreds were priced on Thursday.

The company plans to list the preferreds on the Nasdaq under the symbol “FULTP.”

Wells Fargo & Co. (A2/BBB+/A+)’s $1.17 billion of 4.7% $25-par series AA non-cumulative perpetual class A preferred stock priced on Wednesday softened 25 cents to $24.92 on about 1.8 million shares traded on Monday.

The issue priced better than guidance in the 4.75% to 4.875% area.

The notes were admitted for temporary trading under the symbol, “WFCCL.”

Wells Fargo plans to list the preferreds on the New York Stock Exchange under the symbol “WFCPrA.”

Elsewhere in the finance space, U.S. Bancorp’s 3.75% series L non-cumulative perpetual preferred stock (A3/BBB/BBB+) remained under pressure.

The preferreds, trading under the temporary symbol “UBKPL,” headed out down 5 cents at $24.63 with about 769,000 shares trading.

U.S. Bancorp sold $500 million of the $25-par preferreds on Oct. 20.

The company plans to list the preferreds on the New York Stock Exchange under the symbol “USBPrQ.”

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