Summary
Bank of New York Mellon Corporation (BK) has filed an 8-K report detailing significant actions related to its capital structure, specifically the issuance of Series N Noncumulative Perpetual Preferred Stock. This issuance, represented by Depositary Shares, introduces new terms that may impact the company's ability to pay dividends on or repurchase its common stock, should dividends on the Series N Preferred Stock not be declared and paid. Investors should note that these restrictions are contingent on the dividend payment status of the preferred stock, which carries a liquidation preference of $100,000 per share. The company has also entered into an Underwriting Agreement for the public offering of these Depositary Shares, each representing a 1/100th interest in a share of the Series N Preferred Stock. This filing provides comprehensive details regarding the terms of the Series N Preferred Stock, its preferences, limitations, and relative rights, as well as the agreements governing its offering and depositary structure, offering transparency into the newly established capital instrument.
Key Highlights
- 1BK has issued Series N Noncumulative Perpetual Preferred Stock with a liquidation preference of $100,000 per share.
- 2The issuance of Series N Preferred Stock introduces restrictions on BK's ability to declare or pay dividends on, or repurchase, its common stock if preferred dividends are not paid.
- 3The company has publicly offered 500,000 Depositary Shares, each representing a 1/100th interest in a share of the Series N Preferred Stock.
- 4An Underwriting Agreement was executed with a syndicate of underwriters, including major financial institutions, for the public offering.
- 5The Certificate of Designations, establishing the terms of the Series N Preferred Stock, was filed with the Secretary of State of Delaware and is effective.
- 6A Deposit Agreement is in place with Computershare Inc. and Computershare Trust Company, N.A., acting as depositary for the Depositary Shares.