By Cristal Cody
Tupelo, Miss., July 18 – Bank of America Corp. sold $6 billion of notes (A3/A-/A+) in three tranches on Wednesday, according to a market source.
The bank priced $500 million of six-year floating-rate notes at par to yield Libor plus 96 basis points.
Bank of America sold $2.5 billion of 3.864% six-year fixed-to-floating rate notes at par to yield a spread of Treasuries plus 110 bps. The coupon will convert to Libor plus 94 bps after the initial fixed-rate period.
In the final tranche, the bank sold $3 billion of 4.271% fixed-to-floating rate notes due July 23, 2029 at par to yield a spread of 140 bps over Treasuries. The notes will convert to Libor plus 131 bps after the initial fixed-rate period.
BofA Merrill Lynch was the bookrunner.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $6 billion
|
| Description: | Notes
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | July 18
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A+
|
|
|
| Six-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | July 23, 2024
|
| Coupon: | Libor plus 96 bps
|
| Price: | Par
|
| Yield: | Libor plus 96 bps
|
|
|
| Six-year notes
|
| Amount: | $2.5 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | July 23, 2024
|
| Coupon: | 3.864%; converts to floating rate of Libor plus 94 bps after initial fixed-rate period
|
| Price: | Par
|
| Spread: | Treasuries plus 110 bps
|
|
|
| 11-year notes
|
| Amount: | $3 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | July 23, 2029
|
| Coupon: | 4.271%; converts to floating rate of Libor plus 131 bps after initial fixed-rate period
|
| Spread: | Treasuries plus 140 bps
|
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