By Cristal Cody
Eureka Springs, Ark., Oct. 18 – Bank of America Corp. priced $5 billion of senior notes (Baa1/BBB+/A) in three tranches on Tuesday, according to a market source.
The bank sold $500 million of six-year floating-rate notes at Libor plus 118 basis points.
Bank of America priced $2 billion of 2.503% six-year notes at a spread of Treasuries plus 127 bps.
The final $2.5 billion tranche of 3.248% notes due Oct. 21, 2027 priced at 150 bps over Treasuries.
All of the tranches priced on the tight side of guidance.
BofA Merrill Lynch was the bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $5 billion
|
| Description: | Senior notes
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | Oct. 18
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Six-year floaters
|
| Amount: | $500 million
|
| Maturity: | Oct. 21, 2022
|
| Coupon: | Libor plus 118 bps
|
| Price guidance: | Libor plus 121 bps, plus or minus 3 bps
|
|
|
| Six-year notes
|
| Amount: | $2 billion
|
| Maturity: | Oct. 21, 2022
|
| Coupon: | 2.503%
|
| Spread: | Treasuries plus 127 bps
|
| Price guidance: | Treasuries plus 130 bps area, plus or minus 3 bps
|
|
|
| 11-year notes
|
| Amount: | $2.5 billion
|
| Maturity: | Oct. 21, 2027
|
| Coupon: | 3.248%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area, plus or minus 5 bps
|
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