Published on 2/11/2020 in the Prospect News Investment Grade Daily.
New Issue: Bank of America details $5 billion of fixed-to-floaters in two parts
By Devika Patel
Knoxville, Tenn., Feb. 11 – Bank of America Corp. offered further details about a $5 billion sale of series N medium-term fixed-to-floating rate senior notes (A2/A-/A+) that priced in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
A $1.5 billion tranche of 2.015% notes due Feb. 13, 2026 priced at a Treasuries plus 65 basis points spread. These notes priced at par.
Initial price talk was at a spread in the Treasuries plus 80 bps area.
The notes will reset on Feb. 13, 2025 to a floating rate of Libor plus 64 bps.
Bank of America sold $3.5 billion of 2.496% notes due Feb. 13, 2031 at a 95 bps over Treasuries spread, compared to initial price talk in the Treasuries plus 110 bps area. These notes priced at par.
The notes will reset on Feb. 13, 2030 to a floating rate of Libor plus 99 bps.
BofA Securities Inc. was the bookrunner.
Proceeds will be used for general corporate purposes.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $5 billion
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| Description: | Series N medium-term fixed-to-floating rate senior notes
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| Bookrunner: | BofA Securities Inc.
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| Senior co-managers: | ABN Amro Securities (USA) LLC, ANZ Securities, Inc., Banca IMI SpA, Banco de Sabadell, SA, Bankia, SA, BBVA Securities Inc., BMO Capital Markets Corp., BNY Mellon Capital Markets, LLC, Capital One Securities, Inc., CIBC World Markets Corp., Commonwealth Bank of Australia, Credit Agricole Securities (USA) Inc., Danske Markets Inc., Huntington Investment Co., ING Financial Markets LLC, KeyBanc Capital Markets Inc., Lloyds Securities Inc., Mizuho Securities USA LLC, MUFG, nabSecurities, LLC, Natixis Securities Americas LLC, NatWest Markets Securities Inc., Nomura Securities International, Inc., Nordea Bank ABP, Nykredit Bank A/S, Regions Securities LLC, Santander Investment Securities Inc., Scotia Capital (USA) Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., Standard Chartered Bank, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, UniCredit Capital Markets LLC and Westpac Capital Markets LLC
|
| Junior co-managers: | Great Pacific Securities, MFR Securities, Inc., Multi-Bank Securities, Inc. and Stern Brothers & Co.
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| Trade date: | Feb. 10
|
| Settlement date: | Feb. 13
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| Ratings: | Moody’s: A2
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| S&P: A-
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| Fitch: A+
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| Distribution: | SEC registered
|
|
|
| Six-year notes
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| Amount: | $1.5 billion
|
| Maturity: | Feb. 13, 2026
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| Coupon: | 2.015%; converts on Feb. 13, 2025 to floating rate of Libor plus 64 bps
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| Price: | Par
|
| Spread: | Treasuries plus 65 bps
|
| Call: | Make-whole call at Treasuries plus bps until, then a par call
|
| Price guidance: | Treasuries plus 80 bps area
|
|
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| 11-year notes
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| Amount: | $3.5 billion
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| Maturity: | Feb. 13, 2031
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| Coupon: | 2.496%; converts on Feb. 13, 2030 to floating rate of Libor plus 99 bps
|
| Price: | Par
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole call at Treasuries plus bps until, then a par call
|
| Price guidance: | Treasuries plus 110 bps area
|
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