Bank of America selling at least $250 million noncumulative preferreds talked at 6.75%-6.875%

By Stephanie N. Rotondo

Phoenix, Sept. 2 – Bank of America Corp. is planning an offering of at least $250 million of series W noncumulative perpetual preferred stock (expected ratings: Ba3/BB+/BB), the company said in a prospectus filed with the Securities and Exchange Commission on Tuesday.

Price talk is 6.75% to 6.875%, according to a trader. The preferreds will be issued as depositary shares representing a 1/1,000th interest.

BofA Merrill Lynch is the bookrunner. Citigroup Global Markets Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint lead managers.

When declared, dividends will be paid in March, June, September and December. The Charlotte, N.C.-based bank can redeem the preferreds beginning in 2019 or upon the occurrence of a regulatory capital treatment event at par plus accrued dividends.

The company intends to list the new securities on the New York Stock Exchange under the ticker symbol “BACPW.”

Concurrently with this offering, Bank of America is also conducting a sale of series X fixed-to-floating rate noncumulative preferred stock. Neither offering is contingent upon the other.

Proceeds will be used for general corporate purposes.

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