Published on 1/18/2023 in the Prospect News Investment Grade Daily.
New Issue: Bank of America sells $3 billion 5.08% four-year notes at par
By Mary-Katherine Stinson and Cristal Cody
Lexington, Ky., Jan. 18 – Bank of America Corp. sold $3 billion 5.08% fixed-to-floating-rate senior notes due Jan. 20, 2027 (A2/A-/AA-), according to an FWP filed with the Securities and Exchange Commission.
The notes priced at par, or at a spread of 120 basis points to Treasuries. Price talk was in the Treasuries plus 145 bps area.
They will bear interest at 5.08% initially but will reset for the last year prior to maturity to SOFR plus a spread of 129 bps.
The notes are callable six months after issuance, beginning July 20 at a make-whole premium of Treasuries plus 20 bps. They are redeemable in full on Jan. 20, 2026 at par and in whole or in part after Dec. 18, 2026 at par.
BofA Securities, Inc. was listed as the sole bookrunner and lead manager.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
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| Amount: | $3 billion
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| Issue: | Fixed-to-floating-rate senior notes
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| Maturity: | Jan. 20, 2027
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| Bookrunner: | BofA Securities, Inc.
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| Co-managers: | Apto Partners, LLC, CastleOak Securities, LP, Independence Point Securities LLC, Loop Capital Markets LLC, Multi-Bank Securities, Inc., Roberts & Ryan Investments, Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Citizens Capital Markets, Inc., Commonwealth Bank of Australia, ING Financial Markets LLC, Intesa Sanpaolo SpA, Lloyds Securities Inc., M&T 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, Regions Securities LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, SVB Securities LLC, TD Securities (USA) LLC and Truist Securities, Inc.
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| Coupon: | 5.08% initially; from Jan. 20, 2026 at SOFR plus 129 bps
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| Price: | Par
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| Yield: | 5.08%
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| Spread: | Treasuries plus 120 bps
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| Call features: | On or after July 20, 2023 and prior to Jan. 20, 2026, make-whole call at Treasuries plus 20 bps; in whole on Jan. 20, 2026 at par; in whole or in part on or after Dec. 18, 2026 at par
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| Trade date: | Jan. 17
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| Settlement date: | Jan. 20
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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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| Cusip: | 06051GLE7
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| Price talk: | Treasuries plus 145 bps area
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