What happened to the Series E Noncumulative Perpetual Preferred Stock?

All outstanding shares of the Series E Noncumulative Perpetual Preferred Stock were redeemed by BNY Mellon on December 20, 2021. Subsequently, the company filed a Certificate of Elimination to remove all references to this preferred stock from its Restated Certificate of Incorporation.

Why would BNY Mellon eliminate its preferred stock?

Companies typically eliminate preferred stock after redeeming all outstanding shares to simplify their capital structure, reduce administrative complexity, and eliminate any associated dividend obligations. This can be a strategic move to enhance financial flexibility and potentially improve common shareholder returns.

What is the impact of this filing on BNY Mellon's financial statements?

This filing itself does not directly change BNY Mellon's financial statements as it reports a completed event (redemption and charter amendment). However, the prior redemption would have impacted the balance sheet by reducing liabilities and equity related to preferred stock and increasing cash used. The elimination removes future potential dividend accruals for this series.

Bank of New York Mellon Corp 8-K: Corporate Changes

Q: What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to formally announce and report the elimination of BNY Mellon's Series E Noncumulative Perpetual Preferred Stock from its corporate charter, following the redemption of all outstanding shares of this series.

Summary

The Bank of New York Mellon Corporation (BK) filed an 8-K on December 21, 2021, to report a significant corporate action related to its preferred stock. The company filed a Certificate of Elimination with the Delaware Secretary of State, which effectively removed all provisions related to its Series E Noncumulative Perpetual Preferred Stock from its Restated Certificate of Incorporation. This action was taken subsequent to the redemption of all outstanding shares of the Series E Preferred Stock on December 20, 2021. For investors, this filing signifies the complete retirement of the Series E Preferred Stock. This likely reflects a strategic decision by BNY Mellon to simplify its capital structure and potentially reduce future dividend obligations associated with this series. Investors holding or having held Series E Preferred Stock should note that their rights and the company's obligations pertaining to this specific series are now fully extinguished.

Key Highlights

1BNY Mellon filed a Certificate of Elimination for its Series E Noncumulative Perpetual Preferred Stock.
2The Certificate of Elimination was filed with the Delaware Secretary of State on December 21, 2021.
3Effective upon filing, all matters relating to the Series E Preferred Stock were removed from the company's Restated Certificate of Incorporation.
4All outstanding shares of Series E Noncumulative Perpetual Preferred Stock were redeemed on December 20, 2021.
5This action effectively completes the retirement of the Series E Preferred Stock from BNY Mellon's capital structure.
6The filing is related to Item 5.03 (Amendments to Articles of Incorporation or Bylaws) and Item 9.01 (Exhibits) of the 8-K.

Bank of New York Mellon Corp 8-K Report, Bylaw Amendment (Dec 22, 2021)

Summary

Key Highlights

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