BNY Announces Redemption of 5.224% Fixed Rate / Floating Rate Callable Senior Bank Notes Due 2025

Rhea-AI Summary

BNY (NYSE: BK) has announced the early redemption of its 5.224% Fixed Rate / Floating Rate Callable Senior Bank Notes due November 21, 2025. The redemption involves notes with an aggregate principal amount of $750 million. The redemption will occur on November 21, 2024, with holders receiving 100% of the principal amount plus accrued and unpaid interest. After the redemption date, the notes will cease to be outstanding and will stop accruing interest.

Positive

• Full redemption of $750 million in notes at 100% of principal value, indicating strong liquidity position
• Early debt retirement demonstrates proactive financial management

Negative

• Loss of 5.224% fixed rate funding source

Insights

Fixed Income Analyst

The early redemption of $750 million in senior bank notes reflects BNY Mellon's strategic liability management. With the notes originally due in 2025, this early redemption suggests the bank is taking advantage of current market conditions to optimize its debt structure. The 5.224% fixed/floating rate notes were likely issued during a different interest rate environment and their redemption at par value indicates BNY may have access to more favorable financing options or sufficient liquidity to reduce outstanding debt.

This move could potentially lower BNY's interest expenses and improve its debt profile, though the immediate impact on earnings will depend on how the redemption is funded. For investors, this represents a relatively routine capital management decision that demonstrates the bank's financial flexibility and proactive approach to balance sheet optimization.

NEW YORK, Nov. 13, 2024 /PRNewswire/ -- The Bank of New York Mellon Corporation ("BNY") (NYSE: BK), a global financial services company, today announced that The Bank of New York Mellon, its wholly-owned subsidiary, will redeem all of its issued and outstanding 5.224% Fixed Rate / Floating Rate Callable Senior Bank Notes due November 21, 2025 (CUSIP: 06405LAC5) (the "Notes"). The Notes have an aggregate principal amount of $750,000,000.

The redemption date for the Notes is November 21, 2024 (the "Redemption Date"). The redemption price for the Notes will equal 100% of the principal amount of the Notes plus any accrued and unpaid interest thereon to, but excluding, the Redemption Date (the "Redemption Price").

On and after the Redemption Date, the Notes will no longer be deemed outstanding and interest will no longer accrue on such securities.

Payment of the Redemption Price will be made through the facilities of The Depository Trust Company.

About BNY

BNY is a global financial services company that helps make money work for the world – managing it, moving it and keeping it safe. For 240 years BNY has partnered alongside clients, putting its expertise and platforms to work to help them achieve their ambitions. Today BNY helps over 90% of Fortune 100 companies and nearly all the top 100 banks globally to access the money they need. BNY supports governments in funding local projects and works with over 90% of the top 100 pension plans to safeguard investments for millions of individuals, and so much more. As of September 30, 2024, BNY oversees $52.1 trillion in assets under custody and/or administration and $2.1 trillion in assets under management.

BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in New York City, BNY employs over 50,000 people globally and has been named among Fortune's World's Most Admired Companies and Fast Company's Best Workplaces for Innovators. Additional information is available on www.bny.com. Follow on LinkedIn or visit the BNY Newsroom for the latest company news. 

Contacts:
Media
Garrett Marquis
+1 949 683 1503
garrett.marquis@bny.com 

Analysts
Marius Merz
+1 212 298 1480
marius.merz@bny.com 

 

View original content:https://www.prnewswire.com/news-releases/bny-announces-redemption-of-5-224-fixed-rate--floating-rate-callable-senior-bank-notes-due-2025--302303878.html

SOURCE BNY

FAQ

What is the redemption amount for BNY's (BK) 2025 Senior Bank Notes?

BNY will redeem $750 million in aggregate principal amount of its 5.224% Fixed Rate / Floating Rate Callable Senior Bank Notes.

When will BNY (BK) redeem its 5.224% Senior Bank Notes?

The redemption date is set for November 21, 2024.

What is the redemption price for BNY's (BK) 2025 Notes?

The redemption price will be 100% of the principal amount plus any accrued and unpaid interest up to, but excluding, the redemption date.

What happens to BNY's (BK) Notes after the redemption date?

After November 21, 2024, the Notes will no longer be outstanding and will cease to accrue interest.