Bank of America Announces Redemptions of 2.503% Senior Notes Due October 2022 and Floating Rate Senior Notes Due October 2022

Rhea-AI Summary

Bank of America Corporation announced it will redeem on October 21, 2021 a total of $2.5 billion in Senior Notes, comprising $500 million of Floating Rate Senior Notes and $2 billion of 2.503% Senior Notes, both due October 2022. The redemption price will equal 100% of the principal amount plus accrued interest. Payment for the redemption will occur via The Depository Trust Company, with Bank of New York Mellon Trust Company acting as trustee. The company serves around 66 million clients through extensive banking services.

Positive

• Redemption of $2.5 billion in Senior Notes may improve the capital structure.
• Interest ceases to accrue post-redemption which could enhance cash flow.
• The company maintains a strong consumer base of approximately 66 million clients.

Negative

• None.

CHARLOTTE, N.C., Oct. 4, 2021 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem on October 21, 2021 all $500,000,000 principal amount outstanding of its Floating Rate Senior Notes, due October 2022 (CUSIP No. 06051GFY0) (the "Floating Rate Notes"), and all $2,000,000,000 principal amount outstanding of its 2.503% Senior Notes, due October 2022 (CUSIP No. 06051GFZ7) (the "Fixed Rate Notes" and, together with the Floating Rate Notes, the "Senior Notes"). 

The redemption price for each series of the Senior Notes will be equal to 100% of the principal amount of such series, plus accrued and unpaid interest to, but excluding, the redemption date of October 21, 2021.  Interest on each series of the Senior Notes will cease to accrue on the redemption date.

Payment of the redemption price for the Senior Notes will be made through the facilities of The Depository Trust Company. The Bank of New York Mellon Trust Company, N.A. is the trustee and paying agent for the Senior Notes.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 66 million consumer and small business clients with approximately 4,300 retail financial centers, approximately 17,000 ATMs, and award-winning digital banking with approximately 41 million active users, including approximately 32 million mobile users.  Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services.  The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Forward-looking statements

Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2020, and in any of our subsequent Securities and Exchange Commission filings.  Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom.  Click here to register for news email alerts.

www.bankofamerica.com

Investors May Contact:

Lee McEntire, Bank of America
Phone:  1.980.388.6780
lee.mcentire@bofa.com

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com

Reporters May Contact:

Jerry Dubrowski, Bank of America
Phone: 1.646.855.1195 (office) or 1.508.843.5626 (mobile)
jerome.f.dubrowski@bofa.com

Christopher P. Feeney, Bank of America
Phone: 1.980.386.6794
christopher.feeney@bofa.com

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SOURCE Bank of America Corporation

FAQ

What is the redemption date for Bank of America Senior Notes?

The redemption date for the Senior Notes is October 21, 2021.

How much in Senior Notes is Bank of America redeeming?

Bank of America is redeeming a total of $2.5 billion in Senior Notes.

What types of Senior Notes is Bank of America redeeming?

The redemption includes $500 million of Floating Rate Senior Notes and $2 billion of 2.503% Senior Notes.

Will interest continue to accrue on the Senior Notes after redemption?

No, interest on the Senior Notes will cease to accrue on the redemption date of October 21.

Who is the trustee for the Senior Notes being redeemed by Bank of America?

The trustee for the Senior Notes is Bank of New York Mellon Trust Company, N.A..