BNY Announces Redemption of Floating Rate Senior Notes Due 2024
BNY (NYSE: BK) has announced the redemption of its Floating Rate Senior Notes due October 25, 2024. The redemption will cover all outstanding Notes with an aggregate principal amount of $400 million. The redemption date is set for September 25, 2024, with the redemption price equaling 100% of the principal amount plus any accrued and unpaid interest up to, but excluding, the redemption date. After this date, the Notes will no longer be outstanding, and interest will cease to accrue. The payment will be processed through The Depository Trust Company facilities.
BNY (NYSE: BK) ha annunciato il riscatto dei suoi Floating Rate Senior Notes in scadenza il 25 ottobre 2024. Il riscatto coprirà tutte le Note in circolazione con un importo principale complessivo di $400 milioni. La data di riscatto è fissata per il 25 settembre 2024, con un prezzo di riscatto pari al 100% dell'importo principale più eventuali interessi maturati e non pagati fino, ma escluso, alla data di riscatto. Dopo questa data, le Note non saranno più in circolazione e gli interessi smetteranno di maturare. Il pagamento sarà elaborato tramite le strutture della Depository Trust Company.
BNY (NYSE: BK) ha anunciado el rescate de sus Floating Rate Senior Notes que vencen el 25 de octubre de 2024. El rescate cubrirá todas las Notas pendientes con un monto principal agregado de $400 millones. La fecha de rescate está programada para el 25 de septiembre de 2024, y el precio de rescate será igual al 100% del monto principal más cualquier interés acumulado y no pagado hasta, pero excluyendo, la fecha de rescate. Después de esta fecha, las Notas dejarán de estar pendientes, y los intereses dejarán de acumularse. El pago se procesará a través de las instalaciones de la Depository Trust Company.
BNY (NYSE: BK)는 2024년 10월 25일 만기인 변동 금리 시니어 노트의 환매를 발표했습니다. 이 환매는 총 원금 4억 달러에 해당하는 모든 미지급 노트를 포함합니다. 환매일은 2024년 9월 25일로 설정되며, 환매 가격은 원금의 100%에 해당하는 금액과 환매일까지 발생한 미지급 이자를 포함합니다. 이 날짜 이후에는 노트가 더 이상 유통되지 않으며, 이자도 발생하지 않습니다. 지급은 예탁 신탁 회사의 시설을 통해 처리됩니다.
BNY (NYSE: BK) a annoncé le rachat de ses Floating Rate Senior Notes arrivant à échéance le 25 octobre 2024. Le rachat couvrira toutes les Notes en circulation avec un montant principal total de 400 millions de dollars. La date de rachat est fixée au 25 septembre 2024, et le prix de rachat sera égal à 100 % du montant principal plus tout intérêt accumulé et non payé jusqu'à la date de rachat, mais excluant celle-ci. Après cette date, les Notes ne seront plus en circulation, et les intérêts cesseront de s'accumuler. Le paiement sera traité par les installations de la Depository Trust Company.
BNY (NYSE: BK) hat die Rückzahlung seiner Floating Rate Senior Notes mit Fälligkeit am 25. Oktober 2024 bekannt gegeben. Die Rückzahlung umfasst alle ausstehenden Notes mit einem Gesamtbetrag von 400 Millionen USD. Das Rückzahlungsdatum ist auf den 25. September 2024 festgelegt, wobei der Rückzahlungspreis 100 % des Nennbetrags zuzüglich aller bis dahin aufgelaufenen und nicht gezahlten Zinsen bis zum, aber nicht einschließlich, des Rückzahlungsdatums beträgt. Nach diesem Datum werden die Notes nicht mehr ausstehend sein, und die Zinsen hören auf zu laufen. Die Zahlung wird über die Einrichtungen der Depository Trust Company abgewickelt.
- Early redemption of $400 million in debt, potentially improving the company's debt profile
- Redemption at 100% of principal, indicating no premium payment for early redemption
- None.
BNY Mellon's decision to redeem
- Potential cost savings if BNY expects interest rates to rise
- Opportunity to refinance at more favorable terms in the current market
- Desire to reduce outstanding debt and improve balance sheet metrics
For investors, this action demonstrates BNY's proactive approach to debt management and could be viewed positively as it may lead to reduced interest expenses and improved financial flexibility. However, the impact on BNY's stock price is likely to be minimal, as this redemption was likely anticipated and doesn't significantly alter the company's financial outlook.
The redemption of these notes by BNY Mellon reflects broader market trends in the financial sector. With the current interest rate environment remaining volatile, many financial institutions are reassessing their debt structures. This move suggests that BNY may be:
- Anticipating potential changes in the interest rate landscape
- Responding to competitive pressures in the banking industry
- Aligning its capital structure with evolving regulatory requirements
For the wider market, this action could be seen as a bellwether, potentially signaling a shift in how large financial institutions are approaching their debt management strategies. Investors should monitor whether other major banks follow suit, as it could indicate a broader trend in the sector's approach to managing floating rate obligations in the current economic climate.
The redemption date for the Notes is September 25, 2024 (the "Redemption Date"). The redemption price for the Notes will equal
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
BNY is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Headquartered in
Contacts:
Media
Garrett Marquis
+1 949 683 1503
garrett.marquis@bny.com
Analysts
Marius Merz
+1 212 298 1480
marius.merz@bny.com
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SOURCE BNY
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