New Issue: Bank of America details $5.25 billion issue of notes in four tranches

By Devika Patel

Knoxville, Tenn., Jan. 19 – Bank of America Corp. offered further details about a $5.25 billion sale of notes (A3/A-/A) that priced in four tranches on Thursday, according to an FWP filed with the Securities and Exchange Commission.

The bank priced $500 million of four-year floating-rate notes at Libor plus 38 basis points, sold at a price of par.

Bank of America priced $1.5 billion of 2.738% four-year fixed-to-floating rate notes at a spread of Treasuries plus 57 bps, sold at a price of par. The notes will convert to a floating rate equal to Libor plus 37 bps after Jan. 23, 2021.

The bank sold $2 billion of 3.366% fixed-to-floating rate notes due Jan. 23, 2026 at a spread of 82 bps over Treasuries, sold at a price of par. The notes will convert to a floating rate equal to Libor plus 81 bps after Jan. 23, 2025.

The final $1.25 billion tranche of 3.946% fixed-to-floating rate notes due Jan. 23, 2049 priced with a Treasuries plus 105 bps spread, sold at a price of par. The notes will convert to a floating rate equal to Libor plus 119 bps after Jan. 23, 2048.

BofA Merrill Lynch was the bookrunner.

The financial services company is based in Charlotte, N.C.

Issuer:	Bank of America Corp.
Amount:	$5.25 billion
Description:	Notes
Bookrunner:	BofA Merrill Lynch
Senior co-managers:	ABN Amro Inc., ANZ Securities, Inc., BB&T Capital Markets, BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets LLC, Capital One Securities, Inc., CIBC World Markets Corp., Commonwealth Bank of Australia, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., ICBC Standard Bank plc, ING Financial Markets LLC, Lloyds Securities Inc., Mizuho Securities USA Inc., nabSecurities, LLC, Natixis Securities Americas LLC, Rabo Securities USA, Inc., RBC Capital Markets Corp., RBS Securities Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, Huntington Investment Co., UniCredit Capital Markets LLC and Westpac Capital Markets, LLC
Junior co-managers:	Blaylock Robert Van, LLC, Loop Capital Markets LLC, Multi-Bank Securities, Inc. and Siebert Capital Markets
Trade date:	Jan. 18
Settlement date:	Jan. 23
Ratings:	Moody’s: A3
	S&P: A-
	Fitch: A
Four-year floaters
Amount:	$500 million
Description:	Floating-rate notes
Maturity:	Jan. 23, 2022
Coupon:	Libor plus 38 bps
Price:	Par
Call:	In whole, but not in part, at par on Jan. 23, 2021
Four-year notes
Amount:	$1.5 billion
Description:	Fixed-to-floating rate notes
Maturity:	Jan. 23, 2022
Coupon:	2.738% initially; converts on Jan. 23, 2021 to Libor plus 37 bps
Price:	Par
Spread:	Treasuries plus 57 bps
Call:	In whole, but not in part, at par on Jan. 23, 2021
Eight-year notes
Amount:	$2 billion
Description:	Fixed-to-floating rate notes
Maturity:	Jan. 23, 2026
Coupon:	3.366% initially; converts on Jan. 23, 2025 to Libor plus 81 bps
Price:	Par
Spread:	Treasuries plus 82 bps
Call:	In whole, but not in part, at par on Jan. 23, 2025
31-year notes
Amount:	$1.25 billion
Description:	Fixed-to-floating rate notes
Maturity:	Jan. 23, 2049
Coupon:	3.946% initially; converts on Jan. 23, 2048 to Libor plus 119 bps
Price:	Par
Spread:	Treasuries plus 82 bps
Call:	In whole, but not in part, at par on Jan. 23, 2048

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