Bank of America tapping market with sale of $1,000-par fixed-to-float noncumulative preferreds

By Stephanie N. Rotondo

Seattle, March 7 – Bank of America Corp. is pricing an offering of $1,000-par series DD fixed-to-floating rate noncumulative perpetual preferred stock (Ba2/BB+/BB+), according to a prospectus filed with the Securities and Exchange Commission on Monday.

Initial price talk is around 6.625%, a market source reported.

BofA Merrill Lynch is the bookrunner. Goldman Sachs & Co. is also participating in the deal.

Dividends will be fixed and payable semiannually though March 2026. At that time, the dividend will begin to float at Libor plus a spread and will be payable quarterly.

The Charlotte, N.C.-based bank can redeem the issue on or after March 2026 or upon a regulatory capital treatment event at par plus accrued dividends.

The issue will not be listed on any exchange.

Proceeds will be used for general corporate purposes.

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