2023-05-24 14:51:03 ET
The Bank of New York Mellon ( NYSE: BK ) said that after June 30, CME Term SOFR will be the reference replacement rate for outstanding U.S. dollar LIBOR-linked (London Interbank Offer Rate) securities .
Those securities issued by BNY ( BK ) include fixed-to-floating rate senior unsecured debt securities, floating rate senior unsecured debt securities, floating rate preferred stock (held by Mellon Capital IV), and fixed-to-floating rate preferred stock (represented by depositary shares).
Three-month CME Term SOFR, plus a tenor spread adjustment of 0.26161% each year, will be the reference rate for calculating the amount of interest or dividends payable for interest or dividend periods with reference rate determination dates occurring after June 30.
More on the broader LIBIR-to-SOFR transition
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Wells Fargo provides details about it LIBOR-to-SOFR transition
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Citigroup to transition USD LIBOR securities to SOFR reference rate
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A Repurchase Agreement For Retail Investors - Getting Past SOFR And LIBOR
For further details see:
BNY Mellon to transition USD LIBOR securities to SOFR benchmark rate