Terms

Series

4 5/8% Notes due 2012

Coupon Rate

4.625%

Rate Type

Fixed

Payment Frequency

Semi Annual

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

September 27, 2002

Mandatory Redemption Date

October 1, 2012

Redemption Notice Period

30 days

Capital Stack Ranking

Pari Passu With: Other Unsecured And Unsubordinated Indebtedness Of Pitney Bowes; Senior To: Subordinated Debt Securities, Preferred Stock, Preference Stock, Common Stock

Regulatory (Basel III) Call

No

Tax Classification

Other

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

This filing covers Pitney Bowes Inc.'s $400 million aggregate principal amount of 4.625% senior unsecured notes due October 1, 2012, issued at a public offering price of 99.453% of par ($1,000 denomination). The notes pay interest semi-annually on April 1 and October 1 each year, beginning April 1, 2003. This is a debt instrument, not preferred stock — there are no cumulative or non-cumulative dividend mechanics; interest obligations are contractual and must be paid or the issuer is in default. The notes rank equally with all other unsecured, unsubordinated indebtedness of Pitney Bowes and are senior to any subordinated debt, preferred stock, preference stock, and common stock. There is no structural subordination issue — these are direct obligations of the operating parent. The notes are callable at any time via a make-whole redemption mechanism (treasury rate plus 15 basis points), which effectively prices out early calls economically. There is no regulatory capital call provision, as this is a plain corporate investment-grade debt offering, not a bank capital instrument. The effective yield to maturity at the 99.453% issue price is slightly above the 4.625% coupon. Interest payments on corporate debt are taxable as ordinary income — there is no qualified dividend income (QDI) treatment and no dividends-received deduction (DRD) for corporate holders. Record dates are March 15 and September 15, immediately preceding the April 1 and October 1 payment dates respectively. There are no dividend stopper mechanics; this is a debt security, and failure to pay interest constitutes an event of default triggering acceleration rights for holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Other Preferreds from Pitney Bowes Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 58 (Average)