Published on 4/18/2018 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: BofA prices C$1.5 billion of fixed-to-floaters, floaters in two parts
By Devika Patel
Knoxville, Tenn., April 18 – Bank of America Corp. priced C$1 billion of 3.301% six-year fixed-to-floating rate senior notes (A3/A-/A) on Tuesday at a spread of 118.6 basis points over the Government of Canada Benchmark and C$500 million of four-year floating-rate notes at the Bankers’ Acceptance rate plus 52 bps, according to an FWP filed with the Securities and Exchange Commission.
The fixed to floaters, sold at par, will convert to a floating rate of Bankers’ Acceptance rate plus 81.6 bps on April 24, 2023.
The floaters priced at par.
BofA Merrill Lynch, BMO Capital Markets Corp., CIBC Capital Markets, RBC Capital Markets Corp., Scotia Capital (USA) Inc. and TD Securities (USA) LLC were the joint bookrunners.
The Charlotte, N.C.-based financial services company will use the proceeds for working capital, investments, repayments, reductions, redemptions or repurchases of debt, possible acquisitions or other business-related uses.
| Issuer: | Bank of America Corp.
|
| Amount: | C$1.5 billion
|
| Description: | Fixed-to-floating rate notes, floating-rate notes
|
| Bookrunners: | BofA Merrill Lynch, BMO Capital Markets Corp., CIBC Capital Markets, RBC Capital Markets Corp., Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Co-manager: | National Bank Financial Inc.
|
| Trade date: | April 17
|
| Settlement date: | April 24
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
| DBRS: A
|
|
|
| Fixed-to-floaters
|
| Amount: | C$1 billion
|
| Maturity: | April 24, 2024
|
| Coupon: | 3.301%; resets to Bankers’ Acceptance rate plus 81.6 bps beginning April 24, 2023
|
| Price: | Par
|
| Spread: | Government of Canada benchmark rate plus 118.6 bps
|
| Call: | Make-whole call at Government of Canada bond yield plus 29 bps until April 24, 2023, then a par call on April 24, 2023
|
|
|
| Floaters
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| Amount: | C$500 million
|
| Maturity: | April 24, 2022
|
| Coupon: | Bankers’ Acceptance rate plus 52 bps
|
| Price: | Par
|
| Yield: | Bankers’ Acceptance rate plus 52 bps
|
| Call feature: | Callable at par on April 24, 2021
|
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