BNY Mellon Announces Redemption of 23,300,000 Depositary Shares, Each Representing a 1/4,000th Interest in a Share of its Series C Noncumulative Perpetual Preferred Stock

Rhea-AI Summary

On November 4, 2020, BNY Mellon (NYSE: BK) announced the redemption of all outstanding shares of its Series C Noncumulative Perpetual Preferred Stock and corresponding Depositary Shares. This includes 5,825 shares of Series C Preferred Stock and 23,300,000 Depositary Shares, with a redemption date set for December 20, 2020, and payment to be made on December 21, 2020. The redemption price is $25 per Depositary Share, amounting to $100,000 per share of Series C Preferred Stock. Post-redemption, dividends on these shares will cease to accumulate.

Positive

• None.

Negative

• The redemption of all outstanding Series C Preferred Stock may indicate a strategic shift, possibly reflecting a reduction in preferred equity that could affect future capital structure.
• Investors holding the Depositary Shares will no longer receive dividends after the redemption date, potentially impacting income generation for income-focused investors.

NEW YORK, Nov. 4, 2020 /PRNewswire/ -- BNY Mellon (NYSE: BK) today announced that it will redeem all outstanding shares of its Series C Noncumulative Perpetual Preferred Stock (the "Series C Preferred Stock") and all of the corresponding depositary shares ("Depositary Shares"), each representing a 1/4,000th interest in a share of the Series C Preferred Stock. There are currently 5,825 shares of Series C Preferred Stock and 23,300,000 Depositary Shares outstanding. The Depositary Shares are currently traded on the New York Stock Exchange under the symbol BK PrC (CUSIP 064058209).

The redemption date for the Series C Preferred Stock and the Depositary Shares will be the dividend payment date on December 20, 2020 (the "Redemption Date") and payment of the Redemption Payment (as defined below) will be made on December 21, 2020 (the "Payment Date"). The redemption price for the Depositary Shares will equal $25 per Depositary Share (equivalent to $100,000 per share of Series C Preferred Stock) (the "Redemption Payment"). The Redemption Payment does not include the dividend payment that will be payable on the Payment Date to holders of record on the record date for such dividend payment.

On and after the Redemption Date, the Series C Preferred Stock and the Depositary Shares will no longer be deemed outstanding and dividends in respect of the Series C Preferred Stock represented by the Depositary Shares will no longer accrue.

Simultaneously with the redemption of the Series C Preferred Stock, the outstanding Depositary Shares will be redeemed in accordance with the applicable procedures of The Depository Trust Company ("DTC"), for an amount per Depositary Share equal to the Redemption Payment. All Depositary Shares are held in book-entry form through DTC and will be redeemed in accordance with the procedures of DTC.

Equiniti Trust Company is the depositary, transfer agent and registrar for the Series C Preferred Stock and the Depositary Shares.  Equiniti Trust Company's address and telephone number are as follows: 

First Class/Registered/Certified
Equiniti Trust Company
1110 Centre Pointe Curve
Suite 101
Mendota Heights, MN 55120
1-800-205-7699

Investors in the Depositary Shares should contact the bank or broker through which they hold a beneficial interest in the Depositary Shares for information about obtaining the Redemption Payment for the Depositary Shares in which they have a beneficial interest.

About BNY Mellon
BNY Mellon is a global investments company dedicated to helping its clients manage and service their financial assets throughout the investment lifecycle. Whether providing financial services for institutions, corporations or individual investors, BNY Mellon delivers informed investment and wealth management and investment services in 35 countries. As of Sept. 30, 2020, BNY Mellon had $38.6 trillion in assets under custody and/or administration, and $2.0 trillion in assets under management. BNY Mellon can act as a single point of contact for clients looking to create, trade, hold, manage, service, distribute or restructure investments. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on www.bnymellon.com. Follow us on Twitter @BNYMellon or visit our newsroom at www.bnymellon.com/newsroom for the latest company news.

Contacts:

Media
Madelyn McHugh
+1 212 635 1376
madelyn.mchugh@bnymellon.com

Analysts
Magda Palczynska 
+1 212 635 8529
magda.palczynska@bnymellon.com

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SOURCE BNY Mellon

FAQ

What is the redemption announcement from BNY Mellon regarding BK?

BNY Mellon announced the redemption of all outstanding shares of its Series C Noncumulative Perpetual Preferred Stock and corresponding Depositary Shares on November 4, 2020.

When will BNY Mellon redeem its Series C Preferred Stock?

The redemption date for the Series C Preferred Stock is set for December 20, 2020.

What is the redemption price for BNY Mellon’s Depositary Shares?

The redemption price for the Depositary Shares is $25 each, equivalent to $100,000 per share of Series C Preferred Stock.

What happens to dividends on Series C Preferred Stock after redemption?

After the redemption date, dividends on the Series C Preferred Stock will no longer accrue.

How many Depositary Shares of BNY Mellon are outstanding?

There are currently 23,300,000 Depositary Shares outstanding.