By Aleesia Forni
Virginia Beach, Aug. 21 – Bank of America Corp. priced $4.5 billion of notes (Baa3/BBB+/BBB+) in three tranches on Thursday, a market source said.
There was $500 million of floating-rate notes due 2017 priced at par to yield Libor plus 61 basis points.
The sale also included $1 billion of 1.7% three-year notes priced at 99.895 to yield 1.736%, or Treasuries plus 80 bps.
Pricing was at the tight end of the Treasuries plus 85 bps area talk.
A third tranche was $3 billion of 4.2% subordinated notes due 2024 priced at 180 bps over Treasuries.
The bank priced the notes at the tight end of the Treasuries plus 185 bps area talk.
The notes sold at 99.927 to yield 4.209%.
Proceeds will be used for general corporate purposes.
BofA Merrill Lynch was the bookrunner.
Bank of America is a financial services company based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $4.5 billion
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | Aug. 21
|
| Settlement date: | Aug. 26
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Floaters due 2017
|
| Amount: | $500 million
|
| Issue: | Senior notes
|
| Maturity: | Aug. 25, 2017
|
| Coupon: | Libor plus 61 bps
|
| Price: | Par
|
| Yield: | Libor plus 61 bps
|
|
|
| Notes due 2017
|
| Amount: | $1 billion
|
| Issue: | Senior notes
|
| Maturity: | Aug. 25, 2017
|
| Coupon: | 1.7%
|
| Price: | 99.895
|
| Yield: | 1.736%
|
| Spread: | Treasuries plus 80 bps
|
| Price talk: | Treasuries plus 85 bps area
|
|
|
| Notes due 2024
|
| Amount: | $3 billion
|
| Issue: | Subordinated notes
|
| Maturity: | Aug. 26, 2024
|
| Coupon: | 4.2%
|
| Price: | 99.927
|
| Yield: | 4.209%
|
| Spread: | Treasuries plus 180 bps
|
| Price talk: | Treasuries plus 185 bps area
|
|
|
|
|
|
|
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