BNY Announces Pricing of Public Offering of $500,000,000 of Depositary Shares Representing Interests in Preferred Stock
BNY Mellon (NYSE: BK) has announced the pricing of a $500 million public offering of depositary shares, each representing a 1/100th interest in its Series L Noncumulative Perpetual Preferred Stock. The shares are priced at $1,000 per depositary share with a dividend rate of 5.950% until December 20, 2030.
After December 2030, the dividend rate will reset to the five-year treasury rate plus 2.271%. The preferred stock may be redeemed at BNY's option on December 20, 2030, or any dividend payment date thereafter. The offering, led by major financial institutions as joint book-running managers, is expected to close on September 10, 2025. Proceeds will be used for general corporate purposes.
BNY Mellon (NYSE: BK) ha annunciato il pricing di un'offerta pubblica da $500 milioni di depositary shares, ciascuna rappresentante una quota di 1/100 del suo Serie L Preferred Stock perpetuo non cumulativo. Le azioni sono offerte a $1.000 per depositary share con un tasso di dividendo del 5,950% fino al 20 dicembre 2030.
Dopo dicembre 2030, il tasso di dividendo verrà ricalcolato come il rendimento del Treasury a cinque anni più 2,271%. Il titolo privilegiato potrà essere rimborsato a scelta di BNY il 20 dicembre 2030 o in qualsiasi successiva data di pagamento del dividendo. L'offerta, coordinata da importanti istituzioni finanziarie in qualità di joint book-running managers, è prevista in chiusura il 10 settembre 2025. I proventi saranno destinati a finalità aziendali generali.
BNY Mellon (NYSE: BK) ha anunciado el precio de una oferta pública de $500 millones de depositary shares, cada una representando 1/100 de interés en su Serie L de acciones preferentes perpetuas no acumulativas. Las acciones se han valorado en $1,000 por depositary share con una tasa de dividendo del 5.950% hasta el 20 de diciembre de 2030.
Tras diciembre de 2030, la tasa de dividendo se reajustará al rendimiento del Treasury a cinco años más 2,271%. Las acciones preferentes podrán ser redimidas a opción de BNY el 20 de diciembre de 2030 o en cualquier fecha de pago de dividendos posterior. La oferta, liderada por importantes instituciones financieras como joint book-running managers, se espera que cierre el 10 de septiembre de 2025. Los ingresos se utilizarán para propósitos corporativos generales.
BNY Mellon (NYSE: BK)는 시리즈 L 무배당 영구 우선주의 1/100 지분을 나타내는 예탁증권 $5억 규모의 공모 가격을 발표했습니다. 예탁증권은 주당 $1,000로 가격이 책정되었고, 배당률 5.950%는 2030년 12월 20일까지 적용됩니다.
2030년 12월 이후에는 배당률이 5년 만기 미국 국채 수익률에 2.271%를 더한 비율로 재설정됩니다. 우선주는 BNY의 선택에 따라 2030년 12월 20일 또는 그 이후의 배당지급일에 상환될 수 있습니다. 주요 금융기관들이 공동 주관사로 참여하는 이번 공모는 2025년 9월 10일에 마감될 예정이며, 수익금은 일반 기업 목적에 사용됩니다.
BNY Mellon (NYSE: BK) a annoncé le pricing d'une offre publique de 500 millions de dollars de depositary shares, chacune représentant 1/100ème d'intérêt dans sa Série L d'actions préférentielles perpétuelles non cumulatives. Les actions sont cotées à 1 000 $ par depositary share avec un taux de dividende de 5,950% jusqu'au 20 décembre 2030.
Après décembre 2030, le taux de dividende sera réinitialisé au taux du Treasury à cinq ans majoré de 2,271%. L'action préférentielle pourra être rachetée, au choix de BNY, le 20 décembre 2030 ou à toute date de paiement de dividende ultérieure. L'offre, menée par des institutions financières majeures en tant que co-lead managers, devrait se clôturer le 10 septembre 2025. Les produits serviront à des fins générales de société.
BNY Mellon (NYSE: BK) hat die Preisfestsetzung einer $500 Millionen öffentlichen Platzierung von Depositary Shares bekanntgegeben, von denen jede ein Hundertstel-Anteil an der Series L nicht kumulativen, ewigen Vorzugsaktie darstellt. Die Stücke sind mit $1.000 pro Depositary Share bepreist und haben eine Dividendenrate von 5,950% bis zum 20. Dezember 2030.
Nach Dezember 2030 wird die Dividendenrate auf den Fünfjahres-Treasury-Satz plus 2,271% angepasst. Die Vorzugsaktie kann nach Wahl von BNY am 20. Dezember 2030 oder an einem späteren Dividendenzahlungstag zurückgezahlt werden. Die Platzierung, geleitet von führenden Finanzinstituten als gemeinsame Bookrunner, soll am 10. September 2025 abgeschlossen werden. Die Erlöse werden für allgemeine Unternehmenszwecke verwendet.
- Successful pricing of $500 million preferred stock offering indicates strong market confidence
- Attractive 5.950% dividend rate provides steady income potential for investors
- Strategic capital raise strengthens BNY's financial position
- Multiple top-tier financial institutions participating as joint book-running managers
- Potential dilution of existing shareholders' equity
- Additional dividend payment obligations may impact cash flow
- Higher dividend rate after 2030 could increase cost of capital if treasury rates rise
Insights
BNY's $500M preferred stock offering strengthens capital position with a competitive 5.950% yield, reflecting market confidence.
BNY has priced a $500 million public offering of depositary shares representing interests in its Series L Noncumulative Perpetual Preferred Stock. Each depositary share, priced at
The dividend structure is particularly noteworthy, with an initial fixed rate of
The noncumulative feature means BNY isn't obligated to pay missed dividends, providing financial flexibility during potential future stress scenarios. The perpetual nature with conditional redemption rights (callable from December 2030) allows this issuance to qualify as Tier 1 capital for regulatory purposes, strengthening BNY's capital ratios.
This offering appears reasonably priced relative to current market conditions, with the dividend rate providing an attractive yield for preferred stock investors while still being cost-effective capital for BNY. The joint book-running managers include top-tier financial institutions, suggesting strong distribution capabilities for the offering.
The use of proceeds for "general corporate purposes" maintains flexibility for BNY but likely supports their ongoing capital management strategy as a systemically important financial institution. This offering demonstrates market confidence in BNY's financial stability while bolstering their capital position.
BNY intends to use the net proceeds from the sale of the depositary shares for general corporate purposes, as further described in the preliminary prospectus supplement.
BNY filed a shelf registration statement (including a prospectus) on October 18, 2024, as amended on December 5, 2024 (the "Registration Statement"), and a preliminary prospectus supplement on September 3, 2025, and will file a final prospectus supplement, relating to this offering with the Securities and Exchange Commission (the "SEC"). Prospective investors should read the Registration Statement (including the base prospectus), the preliminary prospectus supplement, the final prospectus supplement (when filed) and other documents BNY has filed and will file with the SEC that are incorporated by reference into the Registration Statement for more complete information about BNY and the offering, including the risks associated with the securities and the offering. This press release does not constitute an offer to sell or the solicitation of any offer to buy securities of BNY, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering was made only by means of a prospectus supplement and accompanying base prospectus. Copies of the Registration Statement, the preliminary prospectus supplement, the final prospectus supplement (when filed) and other documents that BNY has filed with the SEC that are incorporated by reference into the Registration Statement are available at no charge by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, a copy of the prospectus supplement and accompanying base prospectus relating to these securities can be obtained by contacting Barclays Capital Inc. at 1-888-603-5847, BofA Securities, Inc. at 1-800-294-1322, Citigroup Global Markets Inc. at 1-800-831-9146, J.P. Morgan Securities LLC at 1-212-834-4533 or BNY Mellon Capital Markets, LLC at 1-212-498-4399.
About BNY
BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For more than 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, BNY's expectations with respect to the offering and use of proceeds. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond BNY's control). Actual outcomes may differ materially from those expressed or implied as a result of risks and uncertainties, including, but not limited to, the factors identified above and the risk factors and other uncertainties set forth in BNY's Annual Report on Form 10-K for the year ended December 31, 2024 and BNY's other filings with the SEC. All statements in this press release speak only as of the date on which such statements are made, and BNY undertakes no obligation to update any statement to reflect events or circumstances after the date on which such forward-looking statement is made or to reflect the occurrence of unanticipated events.
Contacts:
Investors
Marius Merz
+1 212 298 1480
marius.merz@bny.com
Media
Anneliese Diedrichs
+1 646 468 6026
anneliese.diedrichs@bny.com
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SOURCE BNY
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