BNY Mellon prices benchmark issue of $1,000-par preferreds; Dominion lists; Ally firms

By Stephanie N. Rotondo

Seattle, July 25 – Chatter of a possible preferred stock deal planned for Monday proved correct, as Bank of New York Mellon Corp. announced an offering of $1,000-par series F fixed-to-floating rate noncumulative preferreds.

The deal was initially talked in a 4.875% context but came at 4.625%, according to a market source.

$1 billion of the preferreds were sold at par.

Post-pricing, a source saw the issue offered at 100.25.

As the market digested the new deal, the 5.2% $25-par series C noncumulative preferreds (NYSE: BKPC) traded off 3 cents to $26.46.

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

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 313.1 basis points and will be paid on a quarterly basis.

Dominion Resources Inc.’s $800 million of 5.25% 2016 series A $25-par enhanced junior subordinated notes due 2076 were admitted for trading on the New York Stock Exchange on Monday.

The ticker is “DRUA.” The deal came July 12.

The notes closed at $25.07, up from $24.94 at the open.

In terms of volume, the notes came second only to Ally Financial Inc.’s 8.125% series 2 fixed-to-floating rate trust preferred securities (NYSE: ALLYPA), which finished 2 cents better at $25.10.

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