Bank of America Announces Redemptions of Floating Rate Senior Notes Due March 2024 and 3.550% Fixed/Floating Rate Senior Notes Due March 2024

Rhea-AI Summary

Bank of America Corporation (NYSE: BAC) announced the redemption of two series of Senior Notes totaling $4.5 billion, scheduled for March 5, 2023. The redemption includes $1.5 billion of Floating Rate Senior Notes and $3 billion of 3.550% Fixed/Floating Rate Senior Notes, both maturing in March 2024. Investors will receive 100% of the principal plus accrued interest, paid on the next business day, March 6, 2023, as the redemption date falls on a non-business day.

The Bank of New York Mellon Trust Company, N.A. will act as the trustee for these notes.

Positive

• None.

Negative

• Significant cash outflow of $4.5 billion for note redemptions could impact liquidity.
• Redemption may indicate a strategy to manage interest rate risks, but also suggests reliance on debt financing.

CHARLOTTE, N.C., Feb. 15, 2023 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem on March 5, 2023 all $1,500,000,000 principal amount outstanding of its Floating Rate Senior Notes, due March 2024 (CUSIP No. 06051GHE2) (the "Floating Rate Notes"), and all $3,000,000,000 principal amount outstanding of its 3.550% Fixed/Floating Rate Senior Notes, due March 2024 (CUSIP No. 06051GHF9) (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 March 5, 2023.  Since March 5, 2023 is not a business day, the redemption price together with accrued and unpaid interest will be paid on the next succeeding business day, March 6, 2023. 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 3,900 retail financial centers, approximately 16,000 ATMs, and award-winning digital banking with approximately 56 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.

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:

Bill Halldin, Bank of America
Phone: 1.916.724.0093
william.halldin@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 senior notes is Bank of America redeeming in March 2023?

Bank of America is redeeming $1.5 billion of Floating Rate Senior Notes and $3 billion of 3.550% Fixed/Floating Rate Senior Notes, both due March 2024.

When will the redemption price for Bank of America's senior notes be paid?

The redemption price will be paid on March 6, 2023, since March 5 is not a business day.

What is the total amount of senior notes being redeemed by Bank of America?

The total amount being redeemed by Bank of America is $4.5 billion.

Who is the trustee for the senior notes being redeemed by Bank of America?

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

What happens to the interest on Bank of America’s senior notes post-redemption date?

Interest on the senior notes will cease to accrue on the redemption date, March 5, 2023.