Published on 9/23/2020 in the Prospect News Green Finance Daily and Prospect News Investment Grade Daily.
New Issue: Bank of America details $2 billion 0.981% fixed-to-floaters due 2025
By Devika Patel
Knoxville, Tenn., Sept. 23 – Bank of America Corp. offered further details, including the coupon terms, about a $2 billion sale of 0.981% five-year social and green medium-term fixed-to-floating rate senior notes (A2/A-/A+) that priced on Tuesday at a spread of Treasuries plus 72 basis points, according to an FWP filed with the Securities and Exchange Commission.
Initial price talk was in the Treasuries plus 90 bps area.
The notes will reset on Sept. 25, 2024 to a rate of SOFR plus 91 bps.
BofA Securities Inc. was the bookrunner.
Proceeds will be used to finance or refinance existing and future eligible social assets and eligible green assets, including investments in target markets to reduce inequalities for Black and Hispanic communities and to finance, lease and invest in a transition to a low-carbon economy.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
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| Amount: | $2 billion
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| Maturity: | Sept. 25, 2025
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| Description: | Series N social and green medium-term fixed-to-floating rate senior notes
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| Bookrunner: | BofA Securities, Inc.
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| Joint lead managers: | Loop Capital Markets LLC, Samuel A. Ramirez & 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, Cabrera Capital Markets LLC, CastleOak Securities LP, Great Pacific Securities, Penserra Securities LLC and Tribal Capital Markets, LLC
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| Coupon: | 0.981%; resets on Sept. 25, 2024 to SOFR plus 91 bps
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| Spread: | Treasuries plus 72 bps
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| Trade date: | Sept. 22
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| Settlement date: | Sept. 25
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: A+
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| Distribution: | SEC registered
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| Price talk: | Treasuries plus 90 bps area
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