8-KOther EventsExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Jun 21, 2024)

Filed June 21, 2024For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) has filed an 8-K report to announce a significant change in its debt instrument referencing mechanisms. Effective after June 28, 2024, the Canadian dollar Bankers' Acceptance Rate (CDOR) for a three-month tenor will be replaced by the Fallback Rate (CORRA) as the base rate for certain outstanding floating-rate and fixed-to-floating rate debt securities. This transition is mandated by the cessation of CDOR publication by its administrator, Refinitiv Benchmark Services (UK) Limited, with the final publication scheduled for June 28, 2024. In addition to the benchmark replacement, the Corporation also indicated its intention to redeem a specific series of fixed-to-floating rate debt securities that currently reference Three-Month CDOR. Investors holding these affected debt securities should carefully review the details provided in the press release, which is attached as an exhibit to this filing, for specific information regarding the securities impacted and the upcoming redemption process. The company will issue a separate, formal notice of redemption in accordance with the terms of the debt securities and governing indentures.

Key Highlights

  • 1Bank of America will transition from using CDOR to CORRA as the benchmark rate for specific outstanding debt securities after June 28, 2024.
  • 2The change is driven by the discontinuation of CDOR, with its final publication date set for June 28, 2024.
  • 3The Fallback Rate (CORRA) for a three-month tenor will replace Three-Month CDOR as the base rate.
  • 4This benchmark replacement affects specific floating-rate and fixed-to-floating rate debt securities as detailed in the company's press release.
  • 5Bank of America intends to redeem certain series of fixed-to-floating rate debt securities that currently rely on Three-Month CDOR.
  • 6A formal notice of redemption will be issued separately for the affected debt securities.

Frequently Asked Questions

The primary reason is the discontinuation of the Canadian dollar Bankers' Acceptance Rate (CDOR). Its administrator announced that all remaining CDOR tenors, including the three-month tenor, will cease publication after June 28, 2024. Consequently, Bank of America must transition its affected debt instruments to an alternative benchmark rate.

The Fallback Rate (CORRA) for a three-month tenor will replace the Canadian dollar Bankers' Acceptance Rate (CDOR) for a three-month tenor. This replacement will be effective for interest determinations made on or after June 29, 2024, impacting interest periods commencing after this date.

Yes, Bank of America announced its intention to redeem a series of its fixed-to-floating rate debt securities for which the floating-rate period is currently based on Three-Month CDOR. However, this 8-K filing and the press release are not formal redemption notices; a separate notice will be issued according to the terms of the securities.

Investors holding the affected debt securities should carefully review the press release attached as Exhibit 99.1 to the 8-K filing. This document contains specific details about the CUSIP numbers of the impacted securities, the transition to CORRA, and information related to the intended redemption of certain debt series.