New Issue: Bank of America details $9 billion five-part sale of floating, fixed-to-floating notes

By Rebecca Melvin

Concord, N.H., Feb. 2 – Bank of America Corp. priced $9 billion of floating-rate and fixed-to-floating rate notes in five tranches due 2025, 2028 and 2033 on Tuesday, according to a FWP filings with the Securities and Exchange Commission.

The $750 million tranche of floating-rate notes due Feb. 4, 2025 priced at par to yield SOFR plus 66 basis points. The notes may be called in whole but not in part after two years on Feb. 4, 2024. They are then callable in whole or part after Jan. 3, 2025, both at par plus accrued interest.

A $1.75 billion tranche of 1.843% fixed-to-floating rate notes due Feb. 4, 2025 priced at par for a spread over Treasuries of 67 bps to but excluding Feb. 4, 2024. The rate resets to SOFR plus 67 bps. Initial price talk on the notes was in the Treasuries plus 80 bps area. The notes are callable in whole at par on Feb. 4, 2024 and in whole or in part at par after Jan. 3, 2025.

A $500 million tranche of floating-rate notes due Feb. 4, 2028 priced at par to yield SOFR plus 105 bps. The notes may be called after five-years in whole, and on Jan. 4, 2028 in whole or in part at par plus accrued interest.

A $2.25 billion tranche of 2.551% fixed-to-floating rate notes priced at par for a spread to Treasuries of 92 bps, lower than talk in the 110 bps area. The notes are callable in whole on Feb. 4, 2027 and then in whole or in part beginning Jan. 4, 2028, both at par plus accrued interest.

Finally, a $3.75 billion tranche of 2.972% fixed-to-floating rate notes priced at par to yield 2.972%, or a spread over Treasuries of 117 bps, lower than talk in the 135 bps area. Beginning Feb. 4, 2032, the rate floats at SOFR plus 133 bps. The notes are callable in whole on Feb. 4, 2032 and then in whole or in part beginning Nov. 4, 2032, both at par plus accrued interest.

BofA Securities, Inc. was the bookrunner.

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

Issuer:	Bank of America Corp.
Amount:	$9 billion
Bookrunner:	BofA Securities, Inc.
Co-managers:	Apto Partners LLC, Drexel Hamilton LLC, Great Pacific Securities, Loop Capital Markets LLC, MFR Securities Inc., Telsey Advisory Group LLC, ABN Amro Securities (USA) LLC, ANZ Securities Inc., BBVA Securities Inc., BMO Capital Markets Corp., CIBC World Markets Corp., DBS Bank Ltd., HSBC Securities (USA) Inc., ING Financial Markets LLC, Intesa Sanpaolo SpA, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, MUFG Securities Americas Inc., Natixis Securities Americas LLC, Nomura Securities International, Inc., Nordea bank Abp, PNC Capital Markets LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Standard Chartered Bank, SVB Securities LLC, UniCredit Capital Markets LLC, U.S. Bancorp Investments, Inc. and Westpac Capital Markets LLC
Trade date:	Feb. 1
Settlement date:	Feb. 4
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: AA-
2025 floaters
Amount:	$750 million
Issue:	Floating-rate senior notes
Maturity:	Feb. 4, 2025
Coupon:	SOFR plus 66 bps
Price:	Par
Yield:	SOFR plus 66 bps
Call features:	Callable in whole at par on Feb. 4, 2024 and in whole or in part at par beginning Jan. 3, 2025
Price talk:	SOFR plus spread
Cusip:	06051GKF5
2025 fixed-to-floaters
Amount:	$1.75 billion
Issue:	Fixed-to-floating rate senior notes
Maturity:	Feb. 4, 2025
Coupon:	1.843% initially; converts on Feb. 4, 2024 to SOFR plus 67 bps
Price:	Par
Yield:	1.843%
Spread:	Treasuries plus 67 bps
Call features:	Make-whole call from Aug. 4, 2022 to Feb. 4, 2024 at Treasuries plus 12.5 bps; in whole at par on Feb. 4, 2024; in whole or in part at par after Jan. 3, 2025
Price talk:	Treasuries plus 80 bps area
Cusip:	06051GKG3
2028 floaters
Amount:	$500 million
Issue:	Floating-rate senior notes
Maturity:	Feb. 4, 2028
Coupon:	SOFR plus 105 bps
Price:	Par
Yield:	SOFR plus 105 bps
Call features:	Callable in whole on Feb. 4, 2027 and in whole or in part at par beginning Jan. 4, 2028
Price talk:	SOFR plus equivalent spread
Cusip:	06051GKH1
2028 fixed-to-floaters
Amount:	$2.25 billion
Issue:	Fixed-to-floating rate senior notes
Maturity:	Feb. 4, 2028
Coupon:	2.551% initially; converts on Feb. 4, 2027 to SOFR plus 105 bps
Price:	Par
Yield:	2.551%
Spread:	Treasuries plus 92 bps
Call features:	Make-whole call from Aug. 4, 2022 to Feb. 4, 2027 at Treasuries plus 15 bps; in whole at par on Feb. 4, 2027; in whole or in part at par after Jan. 4, 2028
Price talk:	Treasuries plus 110 bps area
Cusip:	06051GKJ7
2033 fixed-to-floaters
Amount:	$3.75 billion
Issue:	Fixed-to-floating rate notes
Maturity:	Feb. 4, 2033
Coupon:	2.972% until Feb. 4, 2032, then resets to SOFR plus 133 bps
Price:	Par
Yield:	2.972%
Spread:	Treasuries plus 117 bps
Call features:	Make-whole call from Aug. 4, 2022 to Feb. 4, 2032 at Treasuries plus 20 bps; in whole at par on Feb. 4, 2032; in whole or in part at par after Nov. 4, 2032
Price talk:	Treasuries plus 135 bps area
Cusip:	06051GKK4

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