By Marisa Wong and Cristal Cody
Los Angeles, Jan. 21 – Bank of America Corp. priced $1.75 billion of 4.375% $1,000-par perpetual fixed-rate reset non-cumulative preferred stock, series RR, on Thursday, according to a market source.
Price talk was in the 4.5% area.
The coupon will reset in January 2027 to a rate equal to five-year Treasuries plus 276 basis points.
The preferreds will be redeemable on or after the first call date on Jan. 27, 2027.
BofA Securities Inc. is the bookrunner.
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.
| Issuer: | Bank of America Corp.
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| Amount: | $1.75 billion
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| Issue: | Fixed-rate reset non-cumulative preferred stock, series RR
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| Maturity: | Perpetual
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| Bookrunner: | BofA Securities Inc.
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| Dividend: | 4.375%, resets January 2027 to Treasuries plus 276 bps
|
| Call option: | Non-callable until Jan. 27, 2027
|
| Pricing date: | Jan. 20
|
| Price talk: | 4.5% area
|
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