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BNY Prices $1.25 Billion Preferred Stock Depositary Share Offering

NeutralMedium impact
BNY$142.44 −0.60%

The Bank of New York Mellon Corporation (BNY) announced the pricing of an underwritten public offering of 1.25 million depositary shares at $1,000 per share, raising an aggregate of $1.25 billion. Each depositary share represents a 1/100th interest in a share of BNY's Series O Noncumulative Perpetual Preferred Stock.

The preferred shares carry an initial fixed dividend rate of 7.125% per year through December 20, 2031. After that date, dividends will transition to a variable rate based on the five-year Treasury rate plus 2.192%. BNY plans to allocate the net proceeds toward general corporate purposes, strengthening its general financing capacity.

The offering is expected to close on October 28, 2026, subject to customary closing conditions. On or after December 20, 2031, BNY holds the option to redeem the preferred stock in whole or in part at its liquidation preference price. Shares of BNY closed down 0.60% at $142.40 on the day of the announcement.

Key points

  • BNY priced 1.25 million depositary shares at $1,000 each, raising $1.25 billion in gross proceeds.
  • Each depositary share represents a 1/100th interest in BNY's Series O Noncumulative Perpetual Preferred Stock.
  • Dividends accrue at a fixed annual rate of 7.125% until December 20, 2031, then switch to a floating rate.
  • Net proceeds will be used for general corporate purposes, with closing expected on October 28, 2026.

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Questions and answers

How much capital is BNY raising in this public offering?

BNY is raising $1.25 billion by offering 1,250,000 depositary shares at a price of $1,000 per share.

What is the dividend yield on BNY's new Series O preferred stock?

The preferred stock pays a fixed annual dividend rate of 7.125% until December 20, 2031. After that, the rate will adjust to the five-year Treasury rate plus 2.192%.

When will the BNY depositary share offering close?

The offering is expected to close on October 28, 2026, with proceeds directed toward general corporate purposes.