NEW YORK CITY (dpa-AFX) - BNY Mellon (BK) announced that it priced an underwritten public offering of 22 million depositary shares ($550 million of aggregate public offering price), each representing a 1/4,000th interest in a share of its Series C Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,000 per share , at a public offering price of $25 per depositary share.
Dividends will accrue and be payable on the liquidation amount of $100,000 per share of the Series C preferred stock in arrears at 5.20% per annum only when, as and if declared by the board of directors of BNY Mellon and to the extent that BNY Mellon has legally available funds to pay dividends.
The offering is expected to close on September 19, 2012.
The company said it granted the underwriters a 30-day option to purchase an additional 3.30 million depositary shares ($82.5 million of aggregate public offering price) solely to cover over-allotments.
The company said it intends to use any net proceeds that it receives from the sale of the depositary shares for general corporate purposes and may contribute some portion of the net proceeds to the capital of its subsidiaries, which will use any such amount for their general corporate purposes.
BofA Merrill Lynch, Citigroup, Goldman, Sachs & Co., J.P. Morgan and BNY Mellon Capital Markets, LLC served as joint book-running managers for the offering, and Barclays and Deutsche Bank Securities served as co-managers of the offering.
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