#United States #New York #Preferred Stock #Public Offering #Bank of New York

BNY Mellon Unveils Public Offering Pricing

The Bank of New York Mellon Corporation (BNY) has made headlines by announcing the pricing of a significant public offering. This offering includes 500,000 depositary shares, each representing a 1/100th interest in a share of its Series L Noncumulative Perpetual Preferred Stock. The total value of this offering reaches a staggering $500 million, with each depositary share priced at $1,000.

Offering Details

The Series L preferred stock comes with a liquidation preference of $100,000 per share, equivalent to $1,000 for each depositary share. Investors can expect annual dividends accruing on the liquidation amount at a rate of 5.950% until December 20, 2030. Following this date, dividends will be calculated based on the five-year treasury rate plus an additional 2.271%.

Dividend Payments

Dividends will only be distributed when declared by BNY’s board of directors, and this will happen only if the bank has legally available funds to cover such payments. The Series L shares may also be redeemed by BNY after December 20, 2030, at its discretion, at a cash redemption price equal to $100,000 per share, plus any declared and unpaid dividends.

Management and Underwriters

Key players in this offering include Barclays Capital Inc., BofA Securities, Citigroup Global Markets, J.P. Morgan Securities, and BNY Mellon Capital Markets, all serving as joint book-running managers for the offering. The transaction is expected to close on September 10, 2025.

Purpose of Proceeds

The funds raised from this public offering are intended for general corporate purposes, as elaborated in BNY's preliminary prospectus supplement. An essential aspect of the process involves BNY filing a shelf registration statement with the SEC, followed by a preliminary prospectus supplement on September 3, 2025, with details available for prospective investors.

Information for Investors

BNY encourages potential investors to familiarize themselves with the risks related to their investments. Important information regarding the offering, associated risks, and more is outlined in BNY's filings with the SEC. This initiative marks a compelling opportunity for investors, but they are reminded that this press release does not constitute an offer to sell or solicit an offer to buy BNY's securities.

Company Overview

BNY Mellon is renowned as a global financial services leader, historically managing both money and assets for an extensive clientele including over 90% of Fortune 100 companies and nearly all of the top 100 banks. The organization holds a robust asset management portfolio, overseeing $55.8 trillion in assets under custody and $2.1 trillion in assets under management as of mid-2025.

Operating for more than two centuries, BNY has ingrained itself into the financial fabric of the global economy, supporting governments and safeguarding investments for numerous pension plans. Its headquarters are located in New York City, and it has been recognized as one of Fortune's World's Most Admired Companies.

Future Outlook

As a forward-looking financial institution, BNY aims to continue its legacy of service while adapting to an ever-changing marketplace. This offering is just one of the many strategies BNY employs to reinforce its position as a formidable entity in the world of finance. Investors are urged to remain aware of market trends and BNY's adaptive strategies.

In summary, the Bank of New York Mellon's announcement concerning the public offering of depositary shares unveils not just a financial opportunity but also a glimpse into the company's sustained commitment to progress and stability within the financial sector.