New Issue: Bank of America sells $5 billion fixed-to-floating notes in two parts

By Cristal Cody

Tupelo, Miss., March 13 – Bank of America Corp. sold $5 billion of fixed-to-floating rate senior notes (A2/A-/A+) in two tranches on Tuesday, according to a market source and FWP filings with the Securities and Exchange Commission.

The bank priced $2.25 billion of 3.458% six-year notes at par to yield a spread of Treasuries plus 105 basis points. The notes will convert March 15, 2024 to a floating rate of Libor plus 97 bps.

Bank of America sold $2.75 billion of 4.33% fixed-to-floating rate notes due March 15, 2050 at par to yield a spread of Treasuries plus 135 bps. The rate will convert March 15, 2049 to a floating rate of Libor plus 152 bps.

Both tranches priced on top of guidance and better than initial talk.

BofA Merrill Lynch was the bookrunner.

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

Issuer:	Bank of America Corp.
Amount:	$5 billion
Description:	Fixed-to-floating rate senior notes
Bookrunner:	BofA Merrill Lynch
Senior co-managers:	ABN Amro Securities (USA) LLC, Bankia SA, BBVA Securities Inc., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Credit Agricole Securities (USA) Inc., Danske Markets Inc., Huntington Investment Co., ICBC Standard Bank plc, ING Financial Markets LLC, nabSecurities, LLC, Natixis Securities Americas LLC, NatWest Markets Securities Inc., Nordea Bank ABP, Rabo Securities USA, Inc., Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, Standard Chartered Bank, UniCredit Capital Markets LLC and Westpac Capital Markets LLC
Junior co-managers:	CastleOak Securities, LP, Mischler Financial Group, Inc., R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
Trade date:	March 12
Settlement date:	March 15
Ratings:	Moody’s: A2
	S&P: A-
	Fitch: A+
Distribution:	SEC registered
Six-year notes
Amount:	$2.25 billion
Description:	Fixed-to-floating rate notes
Maturity:	March 15, 2025
Coupon:	3.458%; converts March 15, 2024 to floating rate of Libor plus 97 bps
Price:	Par
Yield:	3.458%
Spread:	Treasuries plus 105 bps
Call features:	March 15, 2024 at par; make-whole call on or after Sept. 15, 2019 and before March 15, 2024 at price equal to greater of par or Treasuries plus 20 bps
Price guidance:	Treasuries plus 105 bps; initial talk at Treasuries plus 115 bps area
31-year notes
Amount:	$2.75 billion
Description:	Fixed-to-floating rate notes
Maturity:	March 15, 2050
Coupon:	4.33%; converts March 15, 2049 to floating rate of Libor plus 152 bps
Price:	Par
Yield:	4.33%
Spread:	Treasuries plus 135 bps
Call features:	March 15, 2049 at par; make-whole call on or after Sept. 15, 2019 and before March 15, 2049 at price equal to greater of par or Treasuries plus 25 bps
Price guidance:	Treasuries plus 135 bps; initial talk at Treasuries plus 150 bps area

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