By Stephanie N. Rotondo
Seattle, March 7 – Bank of America Corp. sold $1 billion of 6.3% $1,000-par series DD fixed-to-floating rate noncumulative perpetual preferred stock (Ba2/BB+/BB+) on Monday, according to a market source.
Initial price talk was 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 10, 2026. At that time, the dividend will begin to float at Libor plus 455.3 basis points and will be payable quarterly.
The Charlotte, N.C.-based bank can redeem the issue on or after March 10, 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.
| Issuer: | Bank of America Corp.
|
| Securities: | Series DD fixed-to-floating rate noncumulative preferred stock
|
| Amount: | $1 billion
|
| Maturity: | Perpetual
|
| Bookrunner: | BofA Merrill Lynch
|
| Lead manager: | Goldman Sachs & Co.
|
| Dividend: | Fixed at 6.3% until March 10, 2026, then floating at Libor plus 455.3 bps
|
| Price: | Par of $1,000
|
| Yield: | 6.3%
|
| Talk: | 6.625%
|
| Call options: | On or after March 10, 2026 or upon a regulatory capital treatment event at par plus accrued dividends
|
| Pricing date: | March 7
|
| Settlement date: | March 10
|
| Expected ratings: | Moody’s: Ba2
|
| Standard & Poor’s: BB+
|
| Fitch: BB+
|
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