By Abigail W. Adams
Portland, Me., March 9 – Bank of America Corp. priced $2.35 billion in perpetual fixed-to-floating rate non-cumulative preferred stock, series FF, after the market close on Thursday with a dividend of 5.875%, according to an FWP filing with the Securities and Exchange Commission.
The preferred stock will be sold as $1,000-par depositary shares representing a 1/25th interest in the preferred stock.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the sole bookrunner for the offering.
The depositary shares will have a dividend of 5.875% until March 15, 2028 when they will switch to Libor plus a spread of 293.1 bps.
Dividends will be paid quarterly.
The depositary shares are non-callable until March 15, 2028 except under certain circumstances.
Bank of America is a Charlotte, N.C.-based banking and financial services corporation.
| Issuer: | Bank of America
|
| Issue: | Series FF fixed-to-floating rate non-cumulative preferred shares
|
| Amount: | $2.35 billion, or 2.35 million shares
|
| Maturity: | Perpetual
|
| Bookrunner: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Co-managers: | CastleOak Securities, LP, Drexel Hamilton, LLC, Great Pacific Securities, Penserra Securities LLC
|
| Dividend: | 5.875% until March 15, 2028, then floats at Libor plus 293.1 bps
|
| Price: | Par of $1,000
|
| Call: | Non-callable until March 15, 2028, then freely callable
|
| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
|
| Fitch: BB+
|
| Pricing date: | March 8
|
| Settlement date: | March 15
|
| Distribution: | Off shelf
|
|
|
|
|
© 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.
