Bank of America plans to price $1,000-par fixed-to-floating rate noncumulative preferreds

By Stephanie N. Rotondo

Phoenix, May 21 - Bank of America Corp. is planning a sale of $1,000-par series U fixed-to-floating rate noncumulative preferred stock, the Charlotte, N.C.-based bank said in a prospectus on Tuesday.

The preferreds will be issued as depositary shares representing a 1/25th interest.

BofA Merrill Lynch is the bookrunner.

The preferreds become redeemable in June 2023 at par plus accrued dividends. The preferreds can also be called upon certain capital treatment events.

When declared, dividends will be paid at a fixed rate on a semiannual basis. In June 2023, the preferreds will reset to Libor plus a spread and dividends will then be payable on a quarterly basis.

The stock will not be listed.

Proceeds will be used to redeem the series J, series 6 and series 7 preferreds.

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