Published on 3/18/2022 in the Prospect News Investment Grade Daily.
New Issue: Bank of America sells $3.5 billion floaters, fixed-to-floaters due 2026
By Marisa Wong and Cristal Cody
Los Angeles, March 18 – Bank of America Corp. priced $3.5 billion of medium-term notes, series N, in two tranches due April 2026 (A2/A-/AA-), including floating-rate senior notes and fixed-to-floating rate senior notes, according to FWP filings with the Securities and Exchange Commission and a market source.
The $500 million tranche of floating-rate notes priced at par to yield SOFR plus 133 basis points.
The $3 billion tranche of fixed-to-floating rate senior notes, with an initial coupon of 3.384%, priced at par to yield 3.384%, or 123 bps over Treasuries. The rate resets on April 2, 2025 to SOFR plus 113 bps, according to the market source.
The floaters are callable in whole on April 2, 2025 or in whole or in part on or after March 2, 2026, in each case at par.
The fixed-to-floaters feature a make-whole call at Treasuries plus 20 bps on or after Sept. 22, 2022 and prior to April 2, 2025. After that, the notes will be callable at par in whole on April 2, 2025 or in whole or in part on or after March 2, 2026.
BofA Securities, Inc. is the bookrunner.
The issuer is a Charlotte, N.C.-based bank.
| Issuer: | Bank of America Corp.
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| Amount: | $3.5 billion
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| Issue: | Medium-term notes, series N
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| Maturity: | April 2, 2026
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| Bookrunner: | BofA Securities, Inc.
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| Co-managers: | American Veterans Group, PBC, Blaylock Van, LLC, Multi-Bank Securities, Inc., Penserra Securities LLC, Samuel A. Ramirez & Co., Inc., Siebert Williams Shank & Co., LLC, ANZ Securities, Inc., Banco de Sabadell, SA, BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., Commerz Markets LLC, Commonwealth Bank of Australia, Danske Markets Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Intesa Sanpaolo SpA, Mizuho Securities USA LLC, MUFG, nabSecurities, LLC, Natixis Securities Americas LLC, NatWest Markets Securities Inc., Nomura Securities International, Inc., Nordea Bank Abp, PNC Capital Markets LLC, Regions Securities LLC, Santander Investment Securities Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SVB Securities LLC, TD Securities (USA) LLC and Westpac Capital Markets LLC
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| Trade date: | March 17
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| Settlement date: | March 22
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: AA-
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| Distribution: | SEC registered
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| Floating-rate notes
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| Amount: | $500 million
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| Issue: | Floating-rate senior notes
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| Coupon: | SOFR plus 133 bps
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| Price: | Par
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| Yield: | SOFR plus 133 bps
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| Call feature: | At par in whole on April 2, 2025 or in whole or in part on or after March 2, 2026
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| Cusip: | 06051GKN8
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| Fixed-to-floaters
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| Amount: | $3 billion
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| Issue: | Fixed-to-floating rate senior notes
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| Coupon: | 3.384%, resets on April 2, 2025 to SOFR plus 113 bps
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| Price: | Par
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| Yield: | 3.384%
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| Spread: | Treasuries plus 123 bps
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| Call feature: | Make-whole call at Treasuries plus 20 bps on or after Sept. 22, 2022 and prior to April 2, 2025; at par in whole on April 2, 2025 or in whole or in part on or after March 2, 2026
|
| Cusip: | 06051GKM0
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