Bank of America offers perpetual preferreds talked at 4.5% area

By Marisa Wong and Cristal Cody

Los Angeles, Jan. 20 – Bank of America Corp. plans to price an offering of $1,000-par perpetual fixed-rate reset non-cumulative preferred stock, series RR, according to a 424B2 filing with the Securities and Exchange Commission.

Price talk is in the 4.5% area, according to a market source.

BofA Securities Inc. is the bookrunner.

The coupon will reset in January 2027 to a rate equal to five-year Treasuries plus a spread.

The preferreds will be redeemable on or after the first call date on Jan. 27, 2027.

Bank of America does not plan to apply to list the preferred stock on any securities exchange.

Proceeds will be used for general corporate purposes.

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

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