By Cristal Cody
Tupelo, Miss., Oct. 16 – Bank of America Corp. sold $8.5 billion of medium-term senior notes (A2/A-/A+) in five tranches on Friday, according to a market source.
A $500 million offering of floating-rate notes due Oct. 24, 2024 priced at SOFR plus 73 basis points.
Bank of America sold $2 billion of 0.81% four-year fixed-to-floating rate notes at a spread of 63 bps over Treasuries. The rate will reset after the fixed-rate period to SOFR plus 74 bps.
A $2.5 billion tranche of 1.197% notes due Oct. 24, 2026 priced at Treasuries plus 88 bps.
The notes will reset after the fixed-rate period to SOFR plus 101 bps.
Bank of America priced $2.5 billion of 1.922% notes due Oct. 24, 2031 at a Treasuries plus 118 bps spread.
The coupon will be converted to a floating rate of SOFR plus 137 bps after the fixed-rate period.
Also, Bank of America sold $1 billion of 2.831% notes due Oct. 24, 2051 with a spread of 130 bps over Treasuries.
The rate will reset after the fixed-rate period to SOFR plus 188 bps.
The floaters and the 2024, 2026 and 2031 fixed-to-floaters priced on the tight side of talk, while the long bonds priced on top of guidance.
BofA Securities Inc. was the bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $8.5 billion
|
| Description: | Floating-rate and medium-term fixed-to-floating rate senior notes
|
| Bookrunner: | BofA Securities Inc.
|
| Trade date: | Oct. 16
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Floaters due 2024
|
| Amount: | $500 million
|
| Description: | Floating-rate senior notes
|
| Maturity: | Oct. 24, 2024
|
| Coupon: | SOFR plus 73 bps
|
| Price guidance: | SOFR 75 bps area, plus or minus 2 bps
|
|
|
| Notes due 2024
|
| Amount: | $2 billion
|
| Description: | Medium-term fixed-to-floating rate senior notes
|
| Maturity: | Oct. 24, 2024
|
| Coupon: | 0.81%; converts to SOFR plus 74 bps after fixed-rate period
|
| Spread: | Treasuries plus 63 bps
|
| Price guidance: | Treasuries plus 65 bps area, plus or minus 2 bps
|
|
|
| Notes due 2026
|
| Amount: | $2.5 billion
|
| Description: | Medium-term fixed-to-floating rate senior notes
|
| Maturity: | Oct. 24, 2026
|
| Coupon: | 1.197%; converts to SOFR plus 101 bps after fixed-rate period
|
| Spread: | Treasuries plus 88 bps
|
| Price guidance: | Treasuries plus 90 bps area, plus or minus 2 bps
|
|
|
| Notes due 2031
|
| Amount: | $2.5 billion
|
| Description: | Medium-term fixed-to-floating rate senior notes
|
| Maturity: | Oct. 24, 2031
|
| Coupon: | 1.922%; converts to SOFR plus 137 bps after fixed-rate period
|
| Spread: | Treasuries plus 118 bps
|
| Price guidance: | Treasuries plus 120 bps area, plus or minus 2 bps
|
|
|
| Notes due 2051
|
| Amount: | $2.5 billion
|
| Description: | Medium-term fixed-to-floating rate senior notes
|
| Maturity: | Oct. 24, 2051
|
| Coupon: | 2.831%; converts to SOFR plus 188 bps after fixed-rate period
|
| Spread: | Treasuries plus 130 bps
|
| Price guidance: | Treasuries plus 130 bps
|
|
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