Summary
Bank of America Corporation (BAC) has announced a significant transition for a portion of its outstanding debt and preferred stock, moving away from the soon-to-be-discontinued U.S. dollar LIBOR. Effective after June 30, 2023, the company will replace LIBOR with CME Term SOFR, plus an applicable spread, as the new reference rate for specific floating rate and fixed-to-floating rate debt securities, preferred stock, and trust preferred securities. This transition applies to securities governed by New York or Delaware law and issued by BAC, BofA Finance LLC, and certain other affiliated entities.
Key Highlights
- 1Bank of America is transitioning away from U.S. dollar LIBOR for certain debt and preferred securities.
- 2The replacement reference rate will be CME Term SOFR plus an applicable spread.
- 3The transition is scheduled to take effect after June 30, 2023.
- 4This change impacts floating rate and fixed-to-floating rate debt securities, preferred stock, and trust preferred securities.
- 5The affected securities are those governed by New York or Delaware law.
- 6BAC has issued a press release detailing the specific securities and CUSIP numbers affected by this rate replacement.