BNY prices $1.25 billion preferred stock offering

The Bank of New York Mellon Corporation (NYSE:BNY) has priced a $1.25 billion preferred stock offering, according to a press release. Each depositary share, representing 1/100th interest in a share of Series O Noncumulative Perpetual Preferred Stock, has a liquidation preference of $100,000, equivalent to $1,000 per depositary share.

The offering's price is set at $1,000 per depositary share, with dividends accruing at a rate of 7.125% per annum until December 20, 2031, and then at the five-year treasury rate plus 2.192%. The Series O preferred stock may be redeemed at BNY's discretion starting December 20, 2031, or any dividend payment date thereafter, at a cash redemption price equal to $100,000 per share, plus any declared and unpaid dividends.

Barclays Capital Inc., BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, and BNY Mellon Capital Markets, LLC acted as joint book-running managers for the offering.

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