Published on 5/12/2020 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: BNY Mellon sells $1 billion $1,000-par 4.7% non-cumulative preferreds
By James McCandless
San Antonio, May 12 – Bank of New York Mellon Corp. priced a $1 billion offering of $1,000-par series G non-cumulative perpetual preferred stock with a dividend of 4.7%, according to a press release.
The deal came in under talk for a yield in the 5.25% area.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets, LLC are the bookrunners.
Dividends are payable on March 20 and Sept. 20 starting on Sept. 20, 2020.
The dividend is fixed until Sept. 20, 2025, then resets to a rate equal to the five-year Treasury plus 435.8 basis points. The dividend resets every five years thereafter.
The preferreds are redeemable on or after Sept. 20, 2025 at par. Prior to that, the preferreds are redeemable within 90 days after a regulatory capital treatment event at par.
BNY Mellon plans to use the proceeds for general corporate purposes.
The company does not plan to list the preferreds on any securities exchange.
BNY Mellon is a New York-based financial services company.
| Issuer: | Bank of New York Mellon Corp.
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| Description: | Series G non-cumulative perpetual preferred stock
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| Amount: | $1 billion, or 1 million shares
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| Maturity: | Perpetual
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| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets, LLC
|
| Lead managers: | Barclays, BNP Paribas Securities Corp., BofA Securities, Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC
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| Dividend: | 4.7% until Sept. 20, 2025, then resets to the five-year Treasury plus 435.8 bps; resets every five years thereafter
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| Price: | Par of $1,000
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| Yield: | 4.7%
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| Call: | On or after Sept. 20, 2025 at par; prior to that, within 90 days after a regulatory capital treatment event at par
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| Pricing date: | May 12
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| Settlement date: | May 19
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| Distribution: | SEC registered
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| Listing: | None
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