By Cristal Cody
Chicago, Feb. 1 – Bank of America Corp. priced $9 billion of new notes in a five-tranche deal on Tuesday, according to a market source.
The deal was more than twice oversubscribed with the final order book over $19 billion.
The first two tranches came as a set with a Feb. 5, 2025 maturity date.
The three-year floating-rate part of that set priced with a coupon based on SOFR plus 66 basis points. Initial price talk expected the notes to come with a margin over SOFR at an equivalent spread.
For the fixed-to-floating-rate tranche of the three-year pair, the bank sold $1.75 billion of notes with an initial fixed coupon of 1.843% and a spread of Treasuries plus 67 bps. The rate resets to SOFR plus 67 bps. Initial price talk on the notes was in the Treasuries plus 80 bps area.
Both of the three-year notes have two years of call protection.
The next two tranches were structured similarly but with a six-year tenor, or a maturity date of Feb. 4, 2028.
The floaters in the six-year pair arrived as $500 million of notes with a coupon based on SOFR plus 105 bps. As with the three-year notes, initial talk had the notes coming with an equivalent spread over SOFR.
The second tranche was sold as a $2.5 billon fixed-to-floater with a 2.551% starting coupon that resets to SOFR plus 105 bps. The notes priced with a spread over Treasuries of 92 bps, lower than talk in the 110 bps area.
Both notes in the second set have five years of call protection.
The final tranche is $3.75 billion of fixed-to-floating-rate notes due Feb. 4, 2033 with a 2.972% initial rate that resets to SOFR plus 133 bps. The spread priced out as 117 bps over Treasuries, lower than talk in the 135 bps area.
The 11-year notes have 10 years of call protection.
BofA Securities, Inc. was the bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $9 billion
|
| Bookrunners: | BofA Securities, Inc.
|
| Trade date: | Feb. 1
|
|
|
| 2025 floaters
|
| Amount: | $750 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Feb. 5, 2025
|
| Coupon: | SOFR plus 66 bps
|
| Call features: | Two years
|
| Price talk: | SOFR plus equivalent spread
|
|
|
| 2025 fixed-to-floaters
|
| Amount: | $1.75 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Maturity: | Feb. 5, 2025
|
| Coupon: | 1.843% starting rate; resets to SOFR plus 67 bps
|
| Spread: | Treasuries plus 67 bps
|
| Call features: | Two years
|
| Price talk: | Treasuries plus 80 bps area
|
|
|
| 2028 floaters
|
| Amount: | $500 million
|
| Issue: | Floating-rate notes
|
| Maturity: | Feb. 4, 2028
|
| Coupon: | SOFR plus 105 bps
|
| Call features: | Five years
|
| Price talk: | SOFR plus equivalent spread
|
|
|
| 2028 fixed-to-floaters
|
| Amount: | $2.25 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Maturity: | Feb. 4, 2028
|
| Coupon: | 2.551% starting rate; resets to SOFR plus 105 bps
|
| Spread: | Treasuries plus 92 bps
|
| Call features: | Five years
|
| Price talk: | Treasuries plus 110 bps area
|
|
|
| 2033 fixed-to-floaters
|
| Amount: | $3.75 billion
|
| Issue: | Fixed-to-floating-rate notes
|
| Maturity: | Feb. 4, 2033
|
| Coupon: | 2.972% starting rate; resets to SOFR plus 133 bps
|
| Spread: | Treasuries plus 117 bps
|
| Call features: | 10 years
|
| Price talk: | Treasuries plus 135 bps area
|
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