BNY Prices $500M Preferred Stock Offering at 6.15% Initial Rate
BNY sits 72% above its 52-week low of $93.37.
Summary
BNY priced a $500 million public offering of depositary shares representing Series N Noncumulative Perpetual Preferred Stock. The initial dividend rate is 6.150% until September 2031, then resets to the five-year treasury rate plus 1.868%. The offering is expected to close July 23, with proceeds for general corporate purposes. This follows a strong Q2 earnings beat and a 19% common dividend hike announced last month. The preferred issuance is a routine capital raise for a large bank, but the size and terms are material enough for fixed-income and equity traders to note.
At the time of this announcement, BNY was trading at $160.94 on NYSE in the Finance sector, with a market capitalization of approximately $110.5B. The 52-week trading range was $93.37 to $163.77. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: PR Newswire.