BNY Sells 1.25 Million Preferred Depositary Shares At $990.00 Apiece To Five Banks And Its Own Dealer Arm
BNY's new Series O preferred carries a $100,000 liquidation preference per share and curbs common payouts if a dividend is missed.
Bank of New York Mellon, the custody and securities-services bank known as BNY, agreed to sell 1,250,000 depositary shares tied to a new Series O noncumulative perpetual preferred stock, according to an 8-K filed Wednesday. Each depositary share represents a 1/100th interest in a preferred share, and the new stock is issued on Wednesday with a $100,000 liquidation preference per preferred share.
Six underwriters, $990.00 a share
Under an underwriting agreement dated October 19, the underwriters buy the depositary shares from BNY at $990.00 each. Delivery and payment were set for 9:30 a.m. New York time on October 28.
Barclays, BofA Securities, Deutsche Bank, Goldman Sachs and Morgan Stanley each took 225,000 depositary shares. BNY's own capital-markets arm, BNY Mellon Capital Markets, took 125,000.
The underwriters intend to offer the securities to the public. BNY authorized 12,500 shares of the Series O preferred to stand behind the depositary shares.
Dividend strings on common stock
BNY filed the certificate of designations, the document setting the new stock's terms, with Delaware on Tuesday. It took effect on filing.
If BNY fails to declare and pay, or set aside, Series O dividends for the last preceding dividend period, its freedom to pay common dividends or to buy back common shares, or shares ranking below the Series O, becomes restricted, the filing says.
Who BNY is
BNY provides custody, trust, securities-related, banking and investment management services. As of December 31, 2025, it held $59.3 trillion in assets under custody and/or administration and $2.2 trillion in assets under management, according to its annual report.
The shares were sold under an existing shelf registration, and the depositary is Computershare.
The Series O joins BNY's other listed preferred, including the Series K depositary shares that trade on the New York Stock Exchange.
Sources
- 8-K Filing — Bank of New York Mellon Corp (BNY) — SEC EDGAR
- Exhibit d17537dex11.htm — Bank of New York Mellon Corp 8-K exhibit — SEC EDGAR
