By Stephanie N. Rotondo
Phoenix, March 12 – Bank of America Corp. priced $1.9 billion of 6.1% $1,000-par series AA fixed-to-floating rate noncumulative preferred stock on Thursday, according to a market source.
Price talk was for a dividend of 6.75%.
BofA Merrill Lynch is the bookrunner.
The preferreds will be issued as depositary shares representing a 1/25th interest.
The dividend will be fixed until March 17, 2025, at which time it will begin floating at Libor plus 389.8 basis points. While fixed, the dividends will be payable semiannually. Once floating, the dividend will be payable quarterly.
The Charlotte, N.C.-based bank can redeem the securities on or after March 17, 2025 at par plus accrued dividends. The company can also redeem the paper upon a regulatory capital treatment event.
The issue will not be listed on any exchange.
Proceeds will be used for general corporate purposes, which may include working capital, debt reductions or redemptions or acquisitions.
| Issuer: | Bank of America Corp.
|
| Securities: | Series AA fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $1.9 billion
|
| Maturity: | Perpetual
|
| Bookrunner: | BofA Merrill Lynch
|
| Dividend: | Fixed at 6.1% until March 17, 2025, then floating at Libor plus 389.8 bps
|
| Price: | Par of $1,000
|
| Yield: | 6.1%
|
| Talk: | 6.75%
|
| Call options: | On or after March 17, 2025 or upon a regulatory treatment event at par plus accrued dividends
|
| Pricing date: | March 12
|
| Settlement date: | March 19
|
© 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.
