Published on 12/2/2021 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Bank of America sells $2 billion 1.53% four-year fixed-to-floaters at 67 bps spread
By Devika Patel
Knoxville, Tenn., Dec. 2 – Bank of America Corp. priced $2 billion of 1.53% fixed-to-floating rate senior notes due 2025 (A2/A-/AA-), which are structured as green or social bonds, at a spread of Treasuries plus 67 basis points on Wednesday, according to an FWP filed with the Securities and Exchange Commission.
The Charlotte, N.C., financial services company sold the notes at par with an initial 1.53% coupon, which will convert to a floating rate equal to SOFR plus 65 bps on Dec. 6, 2024.
The notes were talked in the Treasuries plus 85 bps area.
BofA Securities LLC was the bookrunner.
Cabrera Capital Markets LLC, CastleOak Securities LP, C.L. King & Associates Inc., Loop Capital Markets LLC, R. Seelaus & Co. Inc. and Siebert Williams Shank & Co. LLC were joint lead managers.
| Issuer: | Bank of America Corp.
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| Amount: | $2 billion
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| Issue: | Fixed-to-floating rate senior notes
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| Maturity: | Dec. 6, 2025
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| Bookrunner: | BofA Securities LLC
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| Joint lead managers: | Cabrera Capital Markets LLC, CastleOak Securities LP, C.L. King & Associates Inc., Loop Capital Markets LLC, R. Seelaus & Co. Inc. and Siebert Williams Shank & Co. LLC
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| Co-managers: | Academy Securities Inc., AmeriVet Securities, Inc., Apto Partners LLC, Blaylock Van LLC, Great Pacific Securities, MFR Securities, Inc., Penserra Securities LLC, Samuel A. Ramirez & Co. Inc., Stern Brothers & Co., Telsey Advisory Group LLC, Tigress Financial Partners LLC and Tribal Capital Markets LLC
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| Coupon: | 1.53% until Dec. 6, 2024 then at SOFR plus 65 bps
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| Price: | Par
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| Yield: | 1.53%
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| Spread: | Treasuries plus 67 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Dec. 6, 2024, then a par call on Dec. 6, 2024 or on or after Nov. 5, 2025
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| Trade date: | Dec. 1
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| Settlement date: | Dec. 6
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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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| Distribution: | SEC registered
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| Guidance: | Treasuries plus 85 bps area
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| Cusip: | 06051GKE8
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