BNY prices $500 million preferred stock offering

The Bank of New York Mellon Corporation (NYSE: BK) announced it priced an underwritten public offering of 500,000 depositary shares at $1,000 each, raising $500 million in aggregate proceeds.

Each depositary share represents a 1/100th interest in a share of the company's Series L Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,000 per share. The offering is expected to close on September 10, 2025.

The preferred stock will pay dividends at an annual rate of 5.950% from the original issue date until December 20, 2030. After that date, the dividend rate will reset to the five-year treasury rate plus 2.271%. Dividends will be paid only when declared by BNY's board of directors and when the company has legally available funds.

BNY may redeem the Series L preferred stock starting December 20, 2030, or on any dividend payment date thereafter, at $100,000 per share plus any declared and unpaid dividends.

Barclays Capital Inc., BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC and BNY Mellon Capital Markets LLC served as joint book-running managers for the offering.

BNY intends to use the net proceeds for general corporate purposes. The company filed a shelf registration statement in October 2024, amended in December 2024, and filed a preliminary prospectus supplement on September 3, 2025, according to the press release.

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