By Cristal Cody
Tupelo, Miss., July 18 – Bank of America Corp. sold $2.5 billion of 3.194% fixed-to-floating rate senior notes due July 23, 2030 (A2/A-/A+) on Thursday at par to yield a spread of 113 basis points over Treasuries, according to a market source.
The notes will convert to a floating rate of Libor plus 118 bps after the initial fixed-rate period.
BofA Securities, Inc. was the bookrunner.
Proceeds will be used for general corporate purposes, which may include working capital, investments, debt repayments, reductions, redemptions or repurchases or acquisitions.
The financial services company is based in Charlotte, N.C.
| Issuer: | Bank of America Corp.
|
| Amount: | $2.5 billion
|
| Description: | Fixed-to-floating rate senior notes
|
| Maturity: | July 23, 2030
|
| Bookrunner: | BofA Securities, Inc.
|
| Coupon: | 3.194%; resets to Libor plus 118 bps after initial fixed-rate period
|
| Price: | Par
|
| Yield: | 3.194%
|
| Spread: | Treasuries plus 113 bps
|
| Trade date: | July 18
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 115 bps area, plus or minus 2 bps; initial talk at Treasuries plus 125 bps area
|
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