8-KOther Events

Bank of New York Mellon Corp 8-K Report, Corporate Update (Nov 8, 2021)

Filed November 8, 2021For Securities:BKBK-PKBNYBNY-PK

Summary

Bank of New York Mellon Corporation (BK) announced on November 8, 2021, the launch of a proposed public offering for depositary shares representing an interest in a new series of Non-Cumulative Perpetual Preferred Stock (Series I). The primary purpose of this offering, subject to market conditions and pricing, is to redeem some or all of its outstanding Series E Non-Cumulative Perpetual Preferred Stock in December 2021. Any remaining proceeds will be used for general corporate purposes. This move indicates a proactive capital management strategy by BK, aiming to optimize its capital structure by potentially replacing higher-cost preferred stock with a new issuance. Investors should note that the successful pricing and closing of the offering, as well as the subsequent redemption of the Series E Preferred Stock, are not guaranteed and are dependent on market conditions. The company intends to announce any redemption plans via press release and official notice following the offering's closing.

Key Highlights

  • 1BK announced a proposed public offering of Series I Non-Cumulative Perpetual Preferred Stock depositary shares.
  • 2The primary intention for the proceeds is to redeem outstanding Series E Non-Cumulative Perpetual Preferred Stock.
  • 3The redemption of Series E Preferred Stock is planned for the December 2021 dividend payment date.
  • 4The offering is subject to pricing, market conditions, and other considerations; there is no assurance of completion or redemption.
  • 5Any remaining net proceeds from the offering will be used for general corporate purposes.
  • 6BK filed a preliminary prospectus supplement related to the offering with the SEC on November 8, 2021.

Frequently Asked Questions

The main purpose of the proposed public offering of Series I Non-Cumulative Perpetual Preferred Stock depositary shares is to raise capital with the intention of redeeming some or all of the outstanding Series E Non-Cumulative Perpetual Preferred Stock.

If the offering prices and closes successfully and the company decides to proceed with the redemption, it is intended to occur on the dividend payment date in December 2021.

No, the offering is subject to pricing and market conditions, and there is no assurance that it will price and close, or that the company will decide to redeem the Series E Preferred Stock. The extent and timing of any redemption are also not guaranteed.

If there are any remaining net proceeds from the sale of the depositary shares after the redemption of the Series E Preferred Stock, they will be used for general corporate purposes.