Bank of America Announces Redemptions of Floating Rate Senior Notes Due April 2023 and 2.881% Fixed/Floating Rate Senior Notes Due April 2023

Rhea-AI Summary

Bank of America announced it will redeem $1.5 billion of Floating Rate Senior Notes and $1.25 billion of 2.881% Fixed/Floating Rate Senior Notes on April 24, 2022. The redemption price will equal 100% of the principal plus accrued interest, payable on the next business day, April 25, 2022. The trustee for the Senior Notes is The Bank of New York Mellon Trust Company. This action is part of the bank's financial management strategy, reaffirming its commitment to maintaining a strong balance sheet.

Positive

• Redemption of $1.5 billion in Floating Rate Senior Notes improves financial position.
• Redemption of $1.25 billion in Fixed/Floating Rate Senior Notes enhances liquidity.

Negative

• None.

CHARLOTTE, N.C., April 5, 2022 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem on April 24, 2022 all $1,500,000,000 principal amount outstanding of its Floating Rate Senior Notes, due April 2023 (CUSIP No. 06051GGJ2) (the "Floating Rate Notes"), and all $1,250,000,000 principal amount outstanding of its 2.881% Fixed/Floating Rate Senior Notes, due April 2023 (CUSIP No. 06051GGK9) (the "Fixed/Floating 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 April 24, 2022. Since April 24, 2022 is not a business day, the redemption price together with accrued and unpaid interest will be paid on the next succeeding business day, April 25, 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 67 million consumer and small business clients with approximately 4,200 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with more than 54 million verified digital 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, 2021, 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 and 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:

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

When is Bank of America redeeming its Senior Notes?

Bank of America will redeem its Senior Notes on April 24, 2022.

What is the total amount of Senior Notes being redeemed by Bank of America?

Bank of America is redeeming a total of $2.75 billion in Senior Notes.

What will be the payment date for the redemption of Bank of America's Senior Notes?

The payment for the redemption will be made on April 25, 2022.

Who is the trustee for Bank of America's Senior Notes?

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

What is the interest rate on the Fixed/Floating Rate Senior Notes being redeemed?

The Fixed/Floating Rate Senior Notes have an interest rate of 2.881%.