By James McCandless
San Antonio, May 8 – Bank of America Corp. gave details on its $1.2 billion of 6% non-cumulative series GG preferred stock which priced at par of $25 after the market close on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The deal came in line with talk for a dividend of 6%.
Bank of America Merrill Lynch is the sole bookrunner.
J.P. Morgan, Wells Fargo Securities, Morgan Stanley, RBC Capital Markets, and UBS Investment Bank are joint lead managers.
The deal was announced Monday morning.
The notes will be callable after five years.
Dividends are payable quarterly beginning Aug. 16.
There is an over-allotment option for an additional $180 million.
Bank of America plans to use the proceeds for general corporate purposes, including, but not limited to, the repurchase or redemption of outstanding preferred securities.
The company intends to list the stock on the New York Stock Exchange under the symbol “BAC PrB.”
Bank of America is a Charlotte, N.C.-based financial services company.
| Issuer: | Bank of America Corp.
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| Issue: | Series GG non-cumulative preferred stock
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| Amount: | $1.2 billion
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| Greenshoe | $180 million
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| Maturity: | Perpetual
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| Dividend: | 6%
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| Price: | Par of $25
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| Yield: | 6%
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| Call: | May 16, 2023 onwards at par
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| Bookrunners: | Bank of America
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| Lead managers: | J.P. Morgan, Wells Fargo Securities, Morgan Stanley, RBC Capital Markets and UBS Investment Bank
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| Co-managers: | Academy Securities, Inc., Drexel Hamilton, LLC, Mischler Financial Group, Inc. and R. Seelaus & Co., Inc.
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| Pricing date: | May 7
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| Settlement date: | May 16
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| Ratings: | Moody’s: Ba1
|
| S&P: BBB-
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| Fitch: BB+
|
| Listing: | NYSE: BAC PrB
|
| Distribution: | Off shelf
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