By Cristal Cody
Tupelo, Miss., Sept. 13 – Bank of America Corp. sold $4.5 billion of senior notes (Baa1/BBB+/A) in three tranches on Wednesday, according to a market source.
The bank placed $750 million of four-year floating-rate notes at Libor plus 65 basis points.
Bank of America priced $2 billion of 2.328% fixed-to-floating rate notes due Oct. 1, 2021 at a spread of Treasuries plus 85 bps. The rate will convert to a floating rate of Libor plus 63 bps.
In the final tranche, Bank of America sold $1.75 billion of 3.093% fixed-to-floating rate notes due Oct. 1, 2025 at a spread of 108 bps over Treasuries. The notes will have a floating rate of Libor plus 109 bps.
BofA Merrill Lynch was the bookrunner.
Bank of America also was marketing a Canadian dollar-denominated offering of fixed-to-floating rate senior notes on Wednesday.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $4.5 billion
|
| Description: | Senior notes
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | Sept. 13
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A
|
|
|
| Four-year floaters
|
| Amount: | $750 million
|
| Description: | Floating-rate notes
|
| Maturity: | Oct. 1, 2021
|
| Coupon: | Libor plus 65 bps
|
|
|
| Four-year notes
|
| Amount: | $2 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Oct. 1, 2021
|
| Coupon: | 2.328%; converts to floating rate of Libor plus 63 bps
|
| Spread: | Treasuries plus 85 bps
|
|
|
| Eight-year notes
|
| Amount: | $1.75 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Oct. 1, 2025
|
| Coupon: | 3.093%; converts to floating rate of Libor plus 109 bps
|
| Spread: | Treasuries plus 108 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
