By Cristal Cody
Tupelo, Miss., April 19 – Bank of America Corp. priced $6.75 billion of notes (Baa1/BBB+/A) in four tranches on Wednesday, according to a market source.
Bank of America sold $1.5 billion of six-year floating-rate notes at Libor plus 100 basis points.
A $1.25 billion tranche of six-year fixed-to-floating rate notes that priced at a spread of Treasuries plus 115 bps. The notes have an initial 2.881% coupon, which converts later to a floating interest rate.
The company sold $2 billion of 3.705% 11-year notes at a spread of 150 bps over Treasuries.
Bank of America sold $2 billion of 21-year fixed-to-floating rate notes at a spread of Treasuries plus 137 bps. The notes have an initial 4.244% coupon, which converts later to a floating interest rate.
The notes 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: | $6.75 billion
|
| Description: | Notes
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | April 19
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Fitch: A
|
|
|
| Six-year floaters
|
| Amount: | $1.5 billion
|
| Maturity: | Six years
|
| Coupon: | Libor plus 100 bps
|
| Price guidance: | Libor plus 105 bps area, plus or minus 5 bps
|
|
|
| Six-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | Six years
|
| Coupon: | 2.881% initially; later converts to a floating interest rate
|
| Spread: | Treasuries plus 115 bps
|
| Price guidance: | Libor plus 120 bps area, plus or minus 5 bps
|
|
|
| 11-year notes
|
| Amount: | $2 billion
|
| Maturity: | 11 years
|
| Coupon: | 3.705%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area, plus or minus 5 bps
|
|
|
| 21-year notes
|
| Amount: | $2 billion
|
| Maturity: | 21 years
|
| Coupon: | 4.244% initially; later converts to a floating interest rate
|
| Spread: | Treasuries plus 137 bps
|
| Price guidance: | Treasuries plus 140 bps area, plus or minus 3 bps
|
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