By James McCandless
San Antonio, July 17 – Bank of America Corp. priced $854 million of $25-par series HH non-cumulative preferred stock with an initial dividend of 5.875%, according to a market source.
The deal, announced Tuesday morning, was upsized from talk of $250 million and came in at the low end of yield talk of 5.875% to 6%.
BofA Merrill Lynch is the bookrunner.
Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC are also in the syndicate.
The preferreds are callable after five years. Prior to that, they are redeemable within 90 days of a capital treatment event.
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 plans to list the preferreds on the New York Stock Exchange under the symbol “BACPrK.”
Bank of America is a Charlotte, N.C.-based financial services company.
| Issuer: | Bank of America Corp.
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| Description: | Series HH non-cumulative preferred stock
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| Amount: | $854 million, or 34.16 million shares
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| Maturity: | Perpetual
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| Dividend: | 5.875%
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| Price: | Par of $25.00
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| Call: | After five years at par; prior to that, within 90 days of a capital treatment event
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| Bookrunner: | BofA Merrill Lynch
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| Syndicate: | Morgan Stanley & Co. LLC, UBS Securities LLC, Wells Fargo Securities LLC and RBC Capital Markets, LLC
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| Pricing date: | July 17
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| Distribution: | SEC registered
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| Listing: | NYSE: BACPrK
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