Bank of America to Redeem $2 Billion in Senior Notes: Details Inside
Bank of America Announces Redemption of Senior Notes
Bank of America Corporation has announced a significant financial decision to redeem its 4.827% Fixed/Floating Rate Senior Notes, which are scheduled to mature in July 2026. The company is set to redeem a total of $2,000,000,000 in outstanding principal. This move illustrates the bank's proactive approach in managing its financial resources and optimizing its capital structure.
Redemption Details
The redemption will take place on July 22, 2025, with the company ensuring that bondholders will receive 100% of the principal amount of the Notes. Additionally, accrued and unpaid interest will be paid up to, but excluding, the redemption date. Following this date, interest on the Notes will cease to accrue. Payment for the redemption will be facilitated through The Depository Trust Company, with Bank of New York Mellon Trust Company, N.A. acting as the trustee and paying agent.
Significance of the Redemption
This strategic redemption indicates Bank of America's commitment to enhancing its financial standing and reflecting confidence in its liquidity management. By redeeming these senior notes, the bank not only optimizes its capital but also reduces interest expenses effective immediately following the redemption.
Company's Commitment to Clients
Bank of America is recognized as one of the world’s prominent financial institutions, dedicated to serving a vast spectrum of customers, including individual consumers, small businesses, and large corporations. The company offers a comprehensive range of banking and financial services, ensuring top-notch convenience for approximately 69 million clients across various platforms, including around 3,700 retail centers and 15,000 ATMs. Their award-winning digital banking services cater to approximately 59 million verified users, further solidifying their reputation in the financial sector.
Global Presence and Services
With operations in more than 35 countries, Bank of America stands out as a leader in wealth management and corporate investment banking. The organization's commitment to innovation equips around 4 million small business clients with easy-to-use online products and services, showcasing the bank’s adaptability to changing market needs and consumer behavior.
Contact Information for Investors
For inquiries regarding this announcement or additional information, investors are encouraged to reach out to the following contacts:
Lee McEntire
Bank of America
Phone: 1.980.388.6780
Jonathan G. Blum
Bank of America (Fixed Income)
Phone: 1.212.449.3112
Frequently Asked Questions
What is the total amount being redeemed by Bank of America?
Bank of America is redeeming $2,000,000,000 in its senior notes.
When is the redemption date for the notes?
The redemption date is set for July 22, 2025.
What will happen to the interest on the notes after the redemption date?
Interest on the notes will cease to accrue after the redemption date.
Who acts as the trustee for the notes?
The Bank of New York Mellon Trust Company, N.A. serves as the trustee and paying agent for these senior notes.
How does this redemption impact Bank of America's strategy?
The redemption aligns with Bank of America's ongoing strategy to manage its financial resources effectively and reduce interest expenses.
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