Bank of America starts cash tender offers for notes, capital securities

By Jennifer Chiou

New York, April 25 - Bank of America Corp. and wholly owned subsidiary Merrill Lynch & Co., Inc. announced the launch of various separate cash offers to purchase up to $1 billion of notes denominated in various currencies.

Bank of America and subsidiaries BANA Holding Corp. and NB Holdings Corp. are also tendering for up to $750 million or its pound sterling equivalent of several series of capital securities.

The following notes, listed in order of acceptance priority level, are affected in the first set of offers:

• $119 million of Bank of America's 6.05% subordinated notes due Feb. 15, 2038, with a total purchase price of $1,026.65 per $1,000 of notes;

• $130 million of Bank of America's 6.5% subordinated notes due September 2038, with a total purchase price of $1,085.65 per $1,000 of notes;

• $353 million of Bank of America's 6.875% subordinated debentures due 2028, with a total purchase price of $1,056.97 per $1,000 of notes;

• $659 million of Merrill Lynch's 6.22% subordinated notes due Sept. 15, 2026, with a total purchase price of $1,088.15 per $1,000 of notes;

• €562 million of Bank of America's 4.625% subordinated notes due February 2017, with a total purchase price of €989.97 per €1,000 of notes;

• $250 million of Bank of America's 7.25% subordinated notes due 2025, with a total purchase price of $1,115.98 per $1,000 of notes;

• $295 million of Bank of America's 6.8% subordinated notes due 2028, with a total purchase price of $1,029.60 per $1,000 of notes;

• C$493 million of Bank of America's 4.81% fixed-to-floating callable subordinated notes due June 2016, with a total purchase price of C$849.91 per C$1,000 of notes;

• €1,023,000,000 of Bank of America's 4.75% fixed-to-floating callable subordinated notes due May 2017, with a total purchase price of €849.50 per €1,000 of notes;

• €1.36 billion of Bank of America's 4% fixed-to-floating callable subordinated notes due March 2018, with a total purchase price of €843.13 per €1,000 of notes;

• CHF 206 million of Bank of America's 3.375% fixed-to-floating callable subordinated notes due June 14, 2022, with a total purchase price of CHF 845.16 per CHF 1,000 of notes;

• $375 million of Bank of America's floating-rate subordinated notes due 2016, with a total purchase price of $857.96 per $1,000 of notes;

• $185 million of Bank of America's 6.7% subordinated debentures due 2028, with a total purchase price of $1,005.93 per $1,000 of notes;

• £454 million of Bank of America's 5.25% subordinated notes due November 2016, with a total purchase price of £1,015.18 per £1,000 of notes;

• $1,238,000,000 of Bank of America's 5.42% subordinated notes due March 15, 2017, with a total purchase price of $1,025.39 per $1,000 of notes; and

• £228 million of Merrill Lynch's 8.125% subordinated fixed-rate notes due June 2, 2028, with a total purchase price of £1,066.59 per £1,000 of notes;

The total purchase prices include a cash payment of $30.00, €30.00, £30.00, CHF 30.00 or C$30.00, as applicable, for notes tendered by the early deadline of 5 p.m. ET on May 8.

Bank of America will also pay accrued interest.

The offers will end at midnight ET on May 22.

Capital securities offers

Affected securities in the second set of offer include the following:

• $206 million of Bank of America's floating-rate capital securities, with a total payout of $850 per $1,000 of securities (62874FAA7);

• $173 million of Bank of America's floating-rate series 3 capital securities, with a total payout of $850 per $1,000 of securities (066047AA9);

• $155 million of Bank of America's floating-rate capital securities, with a total payout of $850 per $1,000 of securities (06605YAA9);

• $175 million of NB Holdings' floating-rate capital securities, with a total payout of $850 per $1,000 of securities (06808NAE0/06808NAA8);

• $104 million of Bank of America's floating-rate capital securities, with a total payout of $850 per $1,000 of securities (06605VAA5);

• $54 million of Bank of America's floating-rate capital securities, with a total payout of $800 per $1,000 of securities (05518WAA1);

• $108 million of Bank of America's floating-rate series B capital securities, with a total payout of $850 per $1,000 of securities (55263KAA9);

• $98 million of Bank of America's floating-rate capital securities, with a total payout of $850 per $1,000 of securities (33889WAA4);

• $162 million of BANA Holding's fixed-to-floating non-cumulative trust preferred securities, with a total payout of $800 per $1,000 of securities (00371G105);

• £66 million of Bank of America's 5.25% capital securities, with a total payout of £923.75 per £1,000 of securities (XS0226849221);

• $170 million of Bank of America's 5.625% capital securities, with a total payout of $1,010 per $1,000 of securities (05518F209); and

• $763 million of Bank of America's 6.625% capital securities, with a total payout of $1,129.38 per $1,000 of securities (05518F209).

The total purchase prices include a cash payment of $30.00 or £30.00, as applicable, for notes tendered by the early deadline of 5 p.m. ET on May 8.

These offers will also end at midnight ET on May 22.

The bank will also pay accrued interest.

Bank of America Merrill Lynch is the dealer manager (888 292-0070 or 980 388-3646). D.F. King & Co., Inc. (800 549-6746 or call 212 269-5550 if international; bofa@dfking.com) is the tender agent and information agent.

Bank of America is a banking and financial services company based in Charlotte, N.C.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.