By Cristal Cody
Tupelo, Miss., Jan. 18 – Bank of America Corp. sold $5.25 billion of notes (A3/A-/A) in four tranches on Thursday, according to a market source.
The bank priced $500 million of four-year floating-rate notes at Libor plus 38 basis points.
Bank of America priced $1.5 billion of 2.738% four-year fixed-to-floating rate notes at a spread of Treasuries plus 57 bps. The rate will convert to a floating rate after the initial fixed-rate period.
The bank sold $2 billion of 3.366% fixed-to-floating rate notes due Jan. 23, 2026 at a spread of 82 bps over Treasuries. The notes will convert to a floating rate after the initial fixed-rate period.
The final $1.25 billion tranche of 3.946% fixed-to-floating rate notes due Jan. 23, 2049 priced with a Treasuries plus 105 bps spread. The notes will convert to a floating rate 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: | $5.25 billion
|
| Description: | Notes
|
| Bookrunner: | BofA Merrill Lynch
|
| Trade date: | Jan. 18
|
| Ratings: | Moody’s: A3
|
| S&P: A-
|
| Fitch: A
|
|
|
| Four-year floaters
|
| Amount: | $500 million
|
| Description: | Floating-rate notes
|
| Maturity: | Jan. 23, 2022
|
| Coupon: | Libor plus 38 bps
|
|
|
| Four-year notes
|
| Amount: | $1.5 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Jan. 23, 2022
|
| Coupon: | 2.738%; converts to floating rate after initial fixed-rate period
|
| Spread: | Treasuries plus 57 bps
|
|
|
| Eight-year notes
|
| Amount: | $2 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Jan. 23, 2026
|
| Coupon: | 3.366%; converts to floating rate after initial fixed-rate period
|
| Spread: | Treasuries plus 82 bps
|
|
|
| 31-year notes
|
| Amount: | $1.25 billion
|
| Description: | Fixed-to-floating rate notes
|
| Maturity: | Jan. 23, 2049
|
| Coupon: | 3.946%; converts to floating rate after initial fixed-rate period
|
| Spread: | Treasuries plus 82 bps
|
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