By Cristal Cody
Tupelo, Miss., Oct. 17 – Bank of America Corp. sold $4 billion of fixed-to-floating rate senior notes (A2/A-/A+) in two tranches on Thursday, according to a market source.
The bank priced $2 billion of 2.456% green fixed-to-floaters due Oct. 22, 2025 at a spread of Treasuries plus 88 basis points, tighter than initial talk in the 105 bps spread area.
The notes will reset in October 2024 to a floating rate of Libor plus 87 bps.
In a separate offering, Bank of America sold $2 billion of 2.884% fixed-to-floating rate senior notes due Oct. 22, 2030 at a Treasuries plus 113 bps spread. The notes will reset to a floating rate of Libor plus 119 bps after the initial fixed-rate period.
The 2030 notes were initially talked to price with a spread in the 130 bps area.
BofA Securities Inc. was the bookrunner.
Proceeds from the green notes will be used for renewable energy projects, while proceeds from the second tranche of notes will be used for general corporate purposes, including debt repayment.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $4 billion
|
| Description: | Fixed-to-floating rate senior notes
|
| Bookrunner: | BofA Securities Inc.
|
| Trade date: | Oct. 17
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
|
|
| Six-year notes
|
| Amount: | $2 billion
|
| Description: | Green fixed-to-floating rate senior notes
|
| Maturity: | Oct. 22, 2025
|
| Coupon: | 2.456%; converts in October 2024 to floating rate of Libor plus 87 bps
|
| Spread: | Treasuries plus 88 bps
|
| Price guidance: | Treasuries plus 105 bps
|
|
|
| 11-year notes
|
| Amount: | $2 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Oct. 22, 2030
|
| Coupon: | 2.884%; converts after fixed-rate period to floating rate of Libor plus 119 bps
|
| Spread: | Treasuries plus 113 bps
|
| Price guidance: | Treasuries plus 130 bps area
|
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