The Bank of New York Mellon Corporation announced a public offering of depositary shares representing its newly created Series N Noncumulative Perpetual Preferred Stock. The offering is managed by a syndicate of underwriters including Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Morgan Stanley & Co. LLC.
Key Details
- Offering Size: The company is issuing 500,000 depositary shares. Each depositary share represents a 1/100th interest in one share of Series N Preferred Stock, which has a liquidation preference of $100,000 per share, totaling a $500 million liquidation preference for the offering.
- Dividend Terms: The Series N Preferred Stock will pay non-cumulative dividends at a fixed rate of 6.150% per year until September 20, 2031. After this date, the rate will become a floating rate equal to the Five-Year Treasury Rate plus a spread of 1.868%.
- Agreements: The company entered into an underwriting agreement on July 16, 2026, and filed a Certificate of Designations on July 22, 2026, to establish the rights and preferences of the new security. The depositary shares were issued on July 23, 2026.
- Shareholder Rights: The terms of the new Series N Preferred Stock place restrictions on the company's ability to declare or pay dividends on its common stock if dividends on the Series N shares are not paid for the last preceding dividend period.