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BNY Mellon Corporation Pricing a $1.25 Billion Public Offering

On October 19, 2026, The Bank of New York Mellon Corporation (commonly referred to as BNY) announced the pricing details for its public offering of depositary shares. This operation is significant as it raises $1.25 billion, showcasing the bank's robust financial strategies and ongoing adaptability in a competitive market. Each depositary share represents a
1/100th interest in the company's Series O Noncumulative Perpetual Preferred Stock, with a liquidation preference set at $100,000 per share, which is equivalent to $1,000 per depositary share.

The offering was priced at a public offering price of $1,000 per depositary share, totalling an aggregate public offering value of $1.25 billion. This introduction of new capital is designed to widen BNY’s financial margin and enhance its overall capital structure. This significant issuance serves to bolster BNY's ability to better serve its clients across the globe while fostering growth opportunities.

Dividend Details and Redemption Options

The dividends on these shares will accrue based on the liquidation price of $100,000, at an annual rate of 7.125% until December 20, 2031. After this date, the dividend rate will shift to a floating rate tied to the five-year treasury rate plus 2.192%. This structuring is intended to provide a mixture of steady income for investors and flexibility for BNY.

Importantly, dividends will only be paid out if declared by BNY's board of directors and contingent upon the bank having legally available funds. Furthermore, BNY has retained the option to redeem the Series O preferred stock fully or partially at its discretion post December 20, 2031, at a cash redemption price of $100,000 per share (or $1,000 per depositary share) plus any declared but unpaid dividends, giving the bank a cash-efficient strategy for managing its obligations.

Strategic Partnerships

BNY has employed several financial institutions as joint book-running managers for this transaction, including notable names like Barclays Capital Inc. and Goldman Sachs & Co. LLC. This strategic partnership is indicative of BNY's commitment to attracting top-tier financial talent and resources for its operations.

The anticipated closing date for this offering is slated for October 28, 2026. As part of its ongoing commitment to investor transparency, BNY plans to file necessary documentation, including a final prospectus supplement with the U.S. Securities and Exchange Commission (SEC). It’s a vital opportunity for prospective investors who are interested in understanding the associated risks and benefits.

About BNY and Its Position in the Financial Landscape

The Bank of New York Mellon Corporation stands as a global leader in financial services, having evolved over its impressive 240-year history. BNY's extensive platform enables it to efficiently serve a vast array of clients, including over 90% of Fortune 100 companies and numerous governmental organizations. As of September 30, 2026, BNY has overseen an astounding $63.4 trillion in assets under its custody and administration, alongside $2.2 trillion in assets under management.

This scale and depth are further amplified by BNY's efforts to integrate innovation and adapt to market dynamics, consistently recognizing its role in supporting the capital needs of various entities while ensuring a strong investment foundation for clients.

In summary, this public offering by BNY is designed not only to strengthen its financial base but also to ensure that it remains competitive and capable of meeting the diverse needs of its clientele in the marketplace. As BNY continues to navigate through a complex economic landscape, the successful pricing of this offering is a testament to its solid organizational framework and commitment to sustainable growth.