New Issue: Bank of America sells $1.5 billion 5.125% $1,000-par fixed-to-floating preferreds

By Stephanie N. Rotondo

Phoenix, June 12 – Bank of America Corp. priced $1.5 billion of 5.125% $1,000-par series V fixed-to-floating rate noncumulative preferred stock, according to an FWP filed with the Securities and Exchange Commission on Thursday.

BofA Merrill Lynch is the bookrunner. Goldman Sachs & Co. served as a qualified independent underwriter.

The dividend will be fixed until June 17, 2019, at which time it will reset to Libor plus 338.7 basis points. While fixed, and when declared, dividends will be paid semiannually. Once floating, the dividend will be paid quarterly.

The Charlotte, N.C.-based bank can redeem the preferreds on June 17, 2019 at par plus accrued dividends. The preferreds also become callable in the case of a regulatory capital treatment event.

The new securities will not be listed on any exchange.

Proceeds will be used for general corporate purposes.

Issuer:	Bank of America Corp.
Securities:	Series V fixed-to-floating rate noncumulative preferred stock
Amount:	$1.5 billion
Maturity:	Perpetual
Bookrunner:	BofA Merrill Lynch
Co-managers:	Goldman Sachs & Co., ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banca IMI SpA, BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Citigroup Global Markets Inc., Commerz Markets LLC, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ING Financial Markets LLC, Lloyds Securities Inc., Mizuho Securities USA Inc., nabSecurities, LLC, RB International Markets (USA) LLC, RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, the Huntington Investment Co., Wells Fargo Securities, LLC
Junior co-managers:	Drexel Hamilton, LLC, Loop Capital Markets, LLC, Mischler Financial Group, Inc., Muriel Siebert & Co., Inc., Samuel A. Ramirez & Co., Inc.
Dividend:	5.125% until June 17, 2019, then floating at Libor plus 338.7 bps
Price:	Par of $1,000
Yield:	5.125%
Call options:	On or after June 17, 2019 or upon a regulatory capital treatment event at par plus accrued dividends
Pricing date:	June 12
Settlement date:	June 17
Cusip:	060505EG5

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