Giant banker Bank of America (NYSE:BAC) will be selling a new non-cumulative preferred stock issue. You can count on this issue being pretty huge–30 or 40 million shares.
The shares will be typical for a banking company. Qualified, non-cumulative, with quarterly payments. I expect these to be investment grade.
The guesstimated range of coupon for this issue is 5.375% to 5.50%. The company has announced that they may buy back some equity which we take to mean an outstanding preferred. The company has a 6.625% issue outstanding (BAC-W), which becomes redeemable in September. These shares are trading around $25.44 so there is just a little maybe 15 cents of call risk in the shares.
The permanent ticker will be BAC-M, while the OTC Grey market ticker has not yet been announced.