Bank of America to Redeem $2 Billion Fixed/Floating Rate Senior Notes in January 2025

Bank of America to Redeem Senior Notes

In a significant move for its investment strategy, Bank of America Corporation announced that it will redeem all outstanding principal of its 3.366% Fixed/Floating Rate Senior Notes, amounting to $2 billion. The redemption is scheduled for January 23, 2025. This decision reflects the bank's ongoing efforts to optimize its financial portfolio and manage interest rate risk effectively.

The redemption price will be set at 100% of the principal amount, along with any accrued and unpaid interest up to the redemption date. Post-redemption, the interest on these notes will cease to accumulate. The payment process will be conducted through the facilities of The Depository Trust Company, with The Bank of New York Mellon Trust Company, N.A. acting as the trustee and paying agent for these notes.

Bank of America is recognized as a global leader in the financial services sector, providing a diverse range of products and services to various clients, including individual consumers, small businesses, and large corporations. The institution serves around 69 million consumer and small business clients in the United States, boasting a vast network of approximately 3,700 retail financial centers and 15,000 ATMs. Furthermore, its award-winning digital banking platform supports around 58 million verified digital users, emphasizing the bank's commitment to technological advancement and customer convenience.

This redemption aligns with Bank of America's broader strategy to maintain a robust balance sheet and mitigate risks associated with fluctuating interest rates, particularly in the current economic climate of uncertainty. As a forward-looking statement, the bank highlights its focus on structuring liabilities in a way that supports sustained operational efficiency and growth.

The company has further assured its stakeholders that this timely and strategic decision will not adversely impact its financial health but is integral to enhancing overall performance. This action falls within the parameters outlined in the bank’s Annual Report on Form 10-K and future Securities and Exchange Commission filings regarding risk factors.

Bank of America's dynamic approach to managing its financial obligations reflects its position as a preeminent financial institution. As it prepares for this redemption, clients and investors can stay informed of any updates and critical announcements through the Bank of America newsroom, ensuring transparency and ongoing communication.

This news marks a pivotal step not just for Bank of America but also for industry observers monitoring trends in the financial services market, especially in terms of how large institutions like Bank of America handle debt and investment products against a backdrop of evolving economic landscapes. To keep abreast of related news and developments, stakeholders are encouraged to register for email alerts from Bank of America.

In conclusion, the redemption of these senior notes signifies Bank of America’s proactive strategies in maintaining liquidity and preparing for future opportunities in a competitive banking environment. Stakeholders are optimistic about the bank’s direction as it continues to innovate and adapt to the changing financial landscape.