New Issue: Bank of America prices $4.75 billion two-tranche offering of new, reopened notes

By Cristal Cody

Tupelo, Miss., July 27 – Bank of America Corp. priced $4.75 billion of medium-term fixed-to-floating rate senior notes (A2/A-/A+) in two tranches of new and reopened issues, according to a market source and FWP filings with the Securities and Exchange Commission.

A $2.75 billion offering of new 1.898% notes due July 23, 2031 priced at par to yield a spread of Treasuries plus 128 basis points.

Initial price talk was in the Treasuries plus 145 bps area with guidance firmed to the 130 bps area, plus or minus 2 bps.

The rate on the notes will reset to a floating rate of SOFR plus 153 bps beginning July 23, 2030 to but excluding the maturity.

Bank of America priced a $2 billion add-on to its 2.676% fixed-to-floating rate notes due June 19, 2041 at 103.67 to yield 2.442%. The notes priced on top of guidance at a spread of 135 bps over Treasuries.

Bank of America originally sold $3 billion of the 2.676% notes on June 16 at par to yield a spread of 137 bps over Treasuries.

The notes convert to SOFR plus 193 bps starting June 19, 2040.

The total outstanding is now $5 billion.

BofA Securities Inc. was the bookrunner.

The financial services company is based in Charlotte, N.C.

Issuer:	Bank of America Corp.
Amount:	$4.75 billion
Description:	Series N medium-term fixed-to-floating rate senior notes
Bookrunner:	BofA Securities Inc.
Senior co-managers:	ANZ Securities, Inc., BBVA Securities Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., Commerz Markets LLC, Commonwealth Bank of Australia, Credit Agricole Securities (USA) Inc., DBS Bank Ltd., HSBC Securities (USA) Inc., Huntington Securities, Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Intesa Sanpaolo SpA, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, MUFG, nabSecurities, LLC, Natixis Securities Americas LLC, NatWest Markets Securities Inc., Nomura Securities International, Inc., Nordea Bank ABP, Rabo Securities USA, Inc., RB International Markets (USA) LLC, Regions Securities LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, SG Americas Securities, LLC, UniCredit Capital Markets LLC and Westpac Capital Markets LLC
Junior co-managers:	Cabrera Capital Markets, LLC, C.L. King & Associates, Inc., Loop Capital Markets LLC, Mischler Financial Group, Inc., Roberts & Ryan Investments, Inc. and Telsey Advisory Group LLC
Trade date:	July 20
Settlement date:	July 23
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: A+
Distribution:	SEC registered
11-year notes
Amount:	$2.75 billion
Maturity:	July 23, 2031
Coupon:	1.898%; resets to SOFR plus 153 bps July 23, 2030 to but excluding maturity
Price:	Par
Yield:	1.898%
Spread:	Treasuries plus 128 bps
Call features:	Make-whole call on or after Jan. 23, 2021 and before July 23, 2030 at greater of par or Treasuries plus 20 bps; on July 23, 2030 or on or after June 20, 2031 at par
Price guidance:	Treasuries plus 130 bps area, plus or minus 2 bps; initial talk at Treasuries plus 145 bps area
21-year notes
Amount:	$2 billion reopening
Maturity:	June 19, 2041
Coupon:	2.676%; converts to SOFR plus 193 bps starting June 19, 2040
Price:	103.67
Yield:	2.442%
Spread:	Treasuries plus 135 bps
Call features:	Make-whole call on or after Jan. 23, 2021 and before June 19, 2040 at greater of par or Treasuries plus 25 bps; at par on June 19, 2040 and on or after May 17, 2041
Price guidance:	Treasuries plus 135 bps; initial talk at Treasuries plus 145 bps area
Total outstanding:	$5 billion, including $3 billion of notes priced June 16 at par to yield a Treasuries plus 137 bps spread

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