Bank of America Prices New Preferred Issue

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.

The pricing term sheet can be found here.

2 thoughts on “Bank of America Prices New Preferred Issue”

  1. Bought at $25.06, $25.00 and $24.97

    I’m curious where this thing is heading over the next two days.

    Unlike many here….I have no complaints about anything of reasonable quality that is not sub 1%. Twelve years of interest rates that have ranged from nothing to almost nothing. And I believe not only are another 12 years of this possible but we could have inflation as well. Which means negative nominal rates if we are not there already

    1. Just nibbled a little because well, bank interest rates are 0.05%. So my 100 shares can make more than 100K in a savings account.

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