BUFFALO,
N.Y., June 14, 2023 /PRNewswire/ -- M&T Bank
Corporation (NYSE: MTB, M&T) announced today that CME Term SOFR
will be the replacement reference rate for certain outstanding
floating rate and fixed-to-floating rate debt securities, preferred
stock, and trust preferred securities issued by M&T and certain
of its subsidiaries that use three-month U.S. dollar LIBOR as the
reference rate and that are governed by U.S. law or the law of a
U.S. state. This will be effective after June 30, 2023.
In March 2021, the UK Financial
Conduct Authority announced that after June
30, 2023, 1-month, 3-month, 6-month and 12-month USD LIBOR
settings either will cease publication or no longer be
representative.
In connection with the cessation of USD LIBOR in the United States, the Adjustable Interest
Rate (LIBOR) Act (the "LIBOR Act") was passed and subsequently
implemented by regulations issued by the Board of Governors of the
Federal Reserve System (the "LIBOR Rule") to facilitate the
transition of certain U.S. law-governed legacy contracts through a
statutory replacement of USD LIBOR with a SOFR-based replacement
rate. The LIBOR Rule also establishes relevant tenor spread
adjustments applicable to the SOFR-based replacement rates and
provides for such technical, administrative, or operational change,
alterations, or modifications necessary to the implementation,
administration, and calculation of the replacement reference rate
(the "LIBOR Act Conforming Changes").
Accordingly, each Legacy LIBOR Instrument specified in Annex 1
hereto will, on the first applicable date after June 30, 2023, transition to 3 Month CME Term
SOFR, as administered by CME Group Benchmark Administration, Ltd.
(or any successor administrator thereof), plus the relevant tenor
spread adjustment of 0.26161%, either pursuant to; (i) the LIBOR
Act and LIBOR Rule by operation of law, or (ii) at the discretion
of a determining person to select the benchmark replacement under
the LIBOR Act or LIBOR Rule.
For the avoidance of doubt, each Legacy LIBOR Instrument
specified in Annex 1 hereto will transition to a benchmark
replacement rate as described herein, and this announcement does
not automatically affect the transition of such Legacy LIBOR
Instruments to the benchmark replacement rate as of the date
hereof. Additionally, circumstances could change that may impact
the timing and other information described herein.
Forward-Looking Statements
Certain statements contained in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. Forward-looking
statements made in this press release include, without limitation,
statements concerning the expected transition of USD LIBOR
Securities to CME Term SOFR for the applicable tenor, plus the
relevant spread adjustment. These statements are not guarantees of
future results or performance and involve certain risks,
uncertainties and assumptions that are difficult to predict or
beyond our control. You should not place undue reliance on any
forward-looking statement and should consider the uncertainties
with respect to such transition and resulting risks that such
transition would not occur and including those discussed in the
section entitled "Risk Factors" in our Annual Report on Form 10-K
for the year ended December 31, 2022, and in any of our
subsequent Securities and Exchange Commission filings.
Forward-looking statements speak only as of the date they are made,
and except as required by the U.S. federal securities
laws, we undertake no obligation to update any forward-looking
statement to reflect the impact of circumstances or events that
arise after the date the forward-looking statement was made.
About M&T: M&T is a financial holding
company headquartered in Buffalo, New
York. M&T's principal banking subsidiary, M&T Bank,
provides banking products and services in 12 states across the
northeastern U.S. from Maine to
Virginia and Washington, D.C. Trust-related services are
provided in select markets in the U.S. and abroad by M&T's
Wilmington Trust-affiliated companies and by M&T Bank.
Investor Contact:
Brian Klock
(716) 842-5138
Media Contact:
Maya Dillon
(646) 735-1958
Annex
1
|
|
Legacy LIBOR Instruments
|
|
|
CUSIP
No./ISIN
|
Title of
Security
|
Debt
Securities:
|
|
|
JUNR+335B
|
BSB Capital Trust III
Floating Rate Junior Subordinated Debt Securities due
2033
|
|
8428739A1
|
Southern Financial
Trust III Floating Rate Junior Subordinated Debt Securities due
2033
|
Preferred
Stock:
|
|
|
55261FAG9
|
Perpetual
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series
E
|
|
55261F872
|
Fixed-to-Floating Rate
Non-Cumulative Perpetual Preferred Stock, Series H
|
Preferred Stock
(represented by depositary shares):
|
|
55261FAH7
|
Depositary Shares Each
Representing 1/10th Interest in a share of Perpetual Fixed-to-
Floating Rate Non-Cumulative Preferred Stock, Series F
|
Trust Preferred
Securities:
|
|
|
01852FAC7
|
Allfirst Preferred
Capital Trust Floating Rate Non-Cumulative Subordinated Capital
Trust
Enhanced Securities
|
|
320808AD0
|
First Maryland Capital
I Floating Rate Subordinated Capital Income Securities
|
|
32082CAC1
|
First Maryland Capital
II Floating Rate Subordinated Capital Income Securities
|
|
7440509Z0
|
Provident Statutory
Trust III Floating Rate Capital Securities
|
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SOURCE M&T Bank Corporation