ITEM 8.01. OTHER EVENTS.
On May 31, 2022, The Bank of New York Mellon Corporation (the "Company") and
Franklin Resources, Inc. ("Franklin Templeton") announced that they have entered
into a definitive agreement, pursuant to which Franklin Templeton will acquire
BNY Alcentra Group Holdings, Inc. (together with its subsidiaries, "Alcentra")
from the Company. The transaction is expected to be completed early in the first
calendar quarter of 2023, subject to customary closing conditions, including
certain regulatory approvals. Franklin Templeton will pay $350 million in cash
at close and up to a further $350 million in contingent consideration dependent
on the achievement of certain performance thresholds over the next four years.
In addition, Franklin Templeton has committed to purchase all seed capital
investments from the Company related to Alcentra which, as of March 31, 2022,
were valued at approximately $305 million. The seed capital investments will be
valued at the time of close to determine the final seed capital purchase amount.
At close, the Company expects the transaction to increase its Common Equity Tier
1 capital by approximately $0.5 billion.
The information presented in this Current Report on Form 8-K contains
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements, which may be expressed in a
variety of ways, including the use of future or present tense language, relate
to Franklin Templeton's acquisition of Alcentra from the Company, including the
expected timing of the closing of such acquisition and the expected increase to
the Company's Common Equity Tier 1 capital. These statements are based upon
current beliefs and expectations and are subject to significant risks and
uncertainties (some of which are beyond the Company's control). Actual outcomes
may differ materially from those expressed or implied as a result of risks and
uncertainties, including, but not limited to: (i) the occurrence of any event,
change or other circumstances that could give rise to the termination of the
acquisition agreement, (ii) the risks related to the satisfaction of the
conditions to closing the transaction (including the failure to obtain necessary
regulatory and client approvals) and (iii) not satisfying, in whole or in part,
the performance thresholds for the contingent consideration. In addition, actual
results are subject to other risks and uncertainties set forth in the Company's
Annual Report on Form 10-K for the year ended Dec. 31, 2021, the Quarterly
Report on Form 10-Q for the quarter ended March 31, 2022 and the Company's other
filings with the Securities and Exchange Commission. All statements in this
Current Report on Form 8-K speak only as of the date of this filing and the
Company undertakes no obligation to update the information to reflect events or
circumstances that arise after that date or to reflect the occurrence of
unanticipated events, except as required by federal securities laws.
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