Published on 11/21/2016 in the Prospect News Investment Grade Daily and Prospect News Preferred Stock Daily.
New Issue: Bank of America sells $2 billion 4.183% 11-year notes at par with 185 bps spread
By Cristal Cody
Eureka Springs, Ark., Nov. 21 – Bank of America Corp. priced $2 billion of 4.183% 11-year medium-term subordinated notes (Baa3/BBB/A-) at par on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The series L notes due Nov. 25, 2027 priced with a spread of 185 basis points over Treasuries, on the tight side of guidance.
The bank dropped a planned floating-rated tranche from the final offering.
BofA Merrill Lynch was the bookrunner.
Proceeds will be used for general corporate purposes.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $2 billion
|
| Description: | Medium-term subordinated notes
|
| Maturity: | Nov. 25, 2027
|
| Bookrunner: | BofA Merrill Lynch
|
| Senior co-managers: | ANZ Securities, Inc., BBVA Securities Inc., BNY Mellon Capital Markets LLC, Capital One Securities, Inc., Credit Agricole Securities (USA) Inc., Danske Markets Inc., Erste Group Bank AG, HSBC Securities (USA) Inc., ING Financial Markets LLC, MUFG, Mizuho Securities USA Inc., nabSecurities, LLC, Rabo Securities USA, Inc., RB International Markets (USA) LLC, RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, TD Securities (USA) LLC, Huntington Investment Co., UniCredit Capital Markets LLC
|
| Junior co-managers: | Apto Partners, LLC, Drexel Hamilton, LLC
|
| Coupon: | 4.183%
|
| Price: | Par
|
| Yield: | 4.183%
|
| Spread: | Treasuries plus 185 bps
|
| Call feature: | Nov. 25, 2026 at par
|
| Trade date: | Nov. 21
|
| Settlement date: | Nov. 25
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB
|
| Fitch: A-
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 190 bps area, plus or minus 5 bps
|
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