Banker Bank of America (BAC) priced the new issue of preferred stock with the coupon a little lower than ‘yield talk’.
The issue priced at 4.375%. The issue is low investment grade.
The company is selling a giant 44 million shares, and as many people pointed out yesterday, the banker will likely redeem their 6.2% issue (BAC-C) when it becomes redeemable in January. The C issue is 40 million shares so it will require most of the proceeds from this issue.
The issue trades immediately under OTC grey market ticker BACPL.