Published on 6/8/2021 in the Prospect News Investment Grade Daily.
New Issue: Bank of America sells $4.5 billion of fixed-to-floaters due 2024, 2029
By Cristal Cody
Chicago, June 8 – Bank of America Corp. sold two tranches of notes on Monday for a total of $4.5 billion of new issuance, according to FWP filings with the Securities and Exchange Commission.
The new issue includes $1.5 billion of 0.523% fixed-to-floating rate notes due June 14, 2024.
The fixed interest rate resets to a floating rate in the last year of the notes, at a reset rate of SOFR plus 41 basis points.
The spread on the notes is Treasuries plus 37 bps, low to expectations in the Treasuries plus 60 bps area.
The offering also consists of $3 billion 2.087% fixed-to-floating rate notes due June 14, 2029.
In the last year of the notes the fixed coupon converts to a floating rate of SOFR plus 106 bps.
The notes priced with a spread of Treasuries plus 85 bps. Talk had them coming in the Treasuries plus 105 bps area.
Both tranches priced at par.
Both tranches have make-whole call and then par calls.
BofA Securities, Inc. is the bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Issue: | Fixed-to-floating rate notes
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| Amount: | $4.5 billion
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| Bookrunners: | BofA Securities, Inc.
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| Co-managers: | Apto Partners, LLC, C.L. King & Associates, Inc., CastleOak Securities, LP, Drexel Hamilton, LLC, Great Pacific Securities, Tribal Capital Markets, LLC, ABN Amro Securities (USA) LLC, ANZ Securities, Inc., BMO Capital Markets Corp., Capital One Securities, Inc., CIBC World Markets Corp., Commonwealth Bank of Australia, Danske Markets Inc., HSBC Securities (USA) Inc., Huntington Securities, Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, nabSecurities, LLC, NatWest Markets Securities Inc., Nykredit Bank A/S, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, TD Securities (USA) LLC, Truist Securities, Inc., UBS Securities LLC, UniCredit Capital Markets LLC and Westpac Capital Markets LLC
|
| Trade date: | June 7
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| Settlement date: | June 14
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: AA-
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| Distribution: | SEC registered
|
|
|
| 2024 notes
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| Amount: | $1.5 billion
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| Maturity: | June 14, 2024
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| Coupon: | 0.523% initial rate; resets on June 14, 2023 to SOFR plus 41 bps
|
| Price: | Par
|
| Yield: | 0.523%
|
| Spread: | Treasuries plus 37 bps
|
| Call features: | Make-whole call at Treasuries plus 10 bps minus accrued interest until May 14, 2024; thereafter at par
|
| Price talk: | Treasuries plus 60 bps area
|
|
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| 2029 notes
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| Amount: | $3 billion
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| Maturity: | June 14, 2029
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| Coupon: | 2.087% initial rate; resets to SOFR plus 106 bps on June 14, 2028
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| Price: | Par
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| Yield: | 2.087%
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| Spread: | Treasuries plus 85 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps minus accrued interest until June 14, 2028; thereafter at par
|
| Price talk: | Treasuries plus 105 bps area
|
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