Bank of America Announces Redemptions of 3.124% Fixed/Floating Rate Senior Notes Due January 2023 and Floating Rate Senior Notes Due January 2023

Rhea-AI Summary

Bank of America Corporation announced the redemption of all $1.5 billion of its 3.124% Fixed/Floating Rate Senior Notes and $750 million of its Floating Rate Senior Notes, both due January 2023, on January 20, 2022. The redemption price includes 100% of the principal and accrued interest until the redemption date. Payment will be processed via The Depository Trust Company, with The Bank of New York Mellon Trust Company acting as trustee. The company highlights its strong client service base, with approximately 66 million consumer clients and significant digital banking growth.

Positive

• Redeeming $2.25 billion in bonds could improve liquidity.
• Maintaining a strong consumer base with approximately 66 million clients.
• Digital banking growth with about 41 million active users.

Negative

• None.

CHARLOTTE, N.C., Jan. 4, 2022 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem on January 20, 2022 all $1,500,000,000 principal amount outstanding of its 3.124% Fixed/Floating Rate Senior Notes, due January 2023 (CUSIP No. 06051GGE3) (the "Fixed/Floating Rate Notes"), and all $750,000,000 principal amount outstanding of its Floating Rate Senior Notes, due January 2023 (CUSIP No. 06051GGH6) (the "Floating Rate Notes" and, together with the Fixed/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 January 20, 2022.  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 4,200 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.

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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 BAC's senior notes?

The redemption date for Bank of America's senior notes is January 20, 2022.

How much will Bank of America redeem in senior notes?

Bank of America will redeem a total of $2.25 billion in senior notes.

What types of senior notes is Bank of America redeeming?

Bank of America is redeeming both 3.124% Fixed/Floating Rate Senior Notes and Floating Rate Senior Notes.

What is the impact of the redemption on BAC's financial position?

The redemption could improve Bank of America's liquidity by reducing outstanding debt.

Who is the trustee for BAC's senior notes?

The Bank of New York Mellon Trust Company is the trustee for Bank of America's senior notes.