Published on 9/15/2021 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Bank of America sells $2 billion 2.482% fixed-rate reset subordinated notes due 2036
By Devika Patel and Cristal Cody
Knoxville, Tenn., Sept. 15 – Bank of America Corp. sold $2 billion of 2.482% 15-year fixed-rate reset subordinated notes (Baa1/BBB+/A) at par on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
Interest will accrue at 2.482% until Sept. 21, 2031, then the interest rate will reset to Treasuries plus 120 basis points.
The notes were talked in the Treasuries plus 135 bps area.
The notes feature a make-whole call from Sept. 23, 2026 to Sept. 21, 2031 calculated at 20 bps over Treasuries and then become callable beginning March 21, 2036 at par.
The bookrunner is BofA Securities Inc.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
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| Issue: | Fixed-rate reset subordinated notes
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| Amount: | $2 billion
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| Maturity: | Sept. 21, 2036
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| Bookrunner: | BofA Securities Inc.
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| Co-managers: | AmeriVet Securities, Inc., Bancroft Capital, LLC, Great Pacific Securities, MFR Securities, Inc., Roberts & Ryan Investments, Inc., Tigress Financial Partners, LLC, ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banco de Sabadell, SA, Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, Danske Markets Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, nabSecurities, LLC, Nordea Bank ABP, Nykredit Bank A/S, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, TD Securities (USA) LLC, UniCredit Capital Markets LLC and U.S. Bancorp Investments, Inc.
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| Coupon: | 2.482% until Sept. 21, 2031, then at Treasuries plus 120 bps
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| Price: | Par
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| Yield: | 2.482%
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| Spread: | 120 bps over 10-year Treasuries
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| Call: | Make-whole call from Sept. 23, 2026 to Sept. 21, 2031 calculated at 20 bps over Treasuries; callable on or after March 21, 2036 at par
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| Trade date: | Sept. 14
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| Settlement date: | Sept. 21
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A
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| Distribution: | SEC registered
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| Guidance: | Treasuries plus 135 bps area
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| Cusip: | 06051GKC2
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