Published on 4/20/2023 in the Prospect News Investment Grade Daily.
New Issue: Bank of America prices $8.5 billion fixed-to-floaters due 2029, 2034
By Marisa Wong and Cristal Cody
Los Angeles, April 20 – Bank of America Corp. priced $8.5 billion of fixed-to-floating rate senior notes, series N (A2/A-/AA-) in two tranches, according to FWP filings with the Securities and Exchange Commission and details from a market source.
Bank of America priced $3.5 billion of 5.202% fixed-to-floating notes due April 25, 2029 at par to yield 5.202% with a spread of 148 basis points to Treasuries. The coupon resets on April 25, 2028 from a fixed rate to a floating rate of compounded SOFR plus 163 bps.
The company also priced $5 billion of 5.288% fixed-to-floating notes due April 25, 2034 at par to yield 5.288% with a spread of 168 bps to Treasuries. The coupon resets on April 25, 2033 from a fixed rate to a floating rate of compounded SOFR plus 191 bps.
Both tranches feature optional make-whole and par calls.
BofA Securities, Inc. is the lead manager and bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
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| Amount: | $8.5 billion
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| Issue: | Fixed-to-floating rate senior notes, series N
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| Bookrunner: | BofA Securities, Inc.
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| Co-managers: | Academy Securities, Inc., AmeriVet Securities, Inc., Blaylock Van, LLC, Cabrera Capital Markets, LLC, C.L. King & Associates, Inc., Stern Brothers & Co., ANZ Securities, Inc., Bankinter, SA, Capital One Securities, Inc., CIBC World Markets Corp., Commonwealth Bank of Australia, HSBC Securities (USA) Inc., Huntington Securities, Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, KeyBanc Capital Markets Inc., Lloyds Securities Inc., M&T Securities, Inc., Mizuho Securities USA LLC, nabSecurities, LLC, Natixis Securities Americas LLC, Nomura Securities International, Inc., PNC Capital Markets LLC, Rabo Securities USA, Inc., Santander US Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC, Truist Securities, Inc. and Westpac Capital Markets LLC
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| Trade date: | April 19
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| Settlement date: | April 25
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: AA-
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|
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| 2029 notes
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| Amount: | $3.5 billion
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| Maturity: | April 25, 2029
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| Coupon: | 5.202% initially; resets on April 25, 2028 to SOFR plus 163 bps
|
| Price: | Par
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| Yield: | 5.202%
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| Spread: | Treasuries plus 148 bps
|
| Call options: | Make-whole call at Treasuries plus 25 bps on or after Oct. 25, 2023 and prior to April 25, 2028; par call in whole on April 25, 2028 or in whole or in part on or after March 23, 2029
|
| Price talk: | Treasuries plus 170 bps area
|
| Cusip: | 06051GLG2
|
|
|
| 2034 notes
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| Amount: | $5 billion
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| Maturity: | April 25, 2034
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| Coupon: | 5.288%, resets on April 25, 2033 to SOFR plus 191 bps
|
| Price: | Par
|
| Yield: | 5.288%
|
| Spread: | Treasuries plus 168 bps
|
| Call options: | Make-whole call at Treasuries plus 30 bps on or after Oct. 25, 2023 and prior to April 25, 2033; par call in whole on April 25, 2033 or in whole or in part on or after Jan. 25, 2034
|
| Price talk: | Treasuries plus 190 bps area
|
| Cusip: | 06051GLH0
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