Terms

Series

Series GG

Liquidation Preference

$25.00

Coupon Rate

6%

Rate Type

Fixed

Annual Dividend

$1.50

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

May 16, 2023

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of Bank Of America Corporation; Pari Passu With: Series B Preferred Stock, Series D Preferred Stock, Series E Preferred Stock, Series F Preferred Stock, Series G Preferred Stock, Series I Preferred Stock, Series K Preferred Stock, Series L Preferred Stock, Series T Preferred Stock, Series U Preferred Stock, Series V Preferred Stock, Series W Preferred Stock, Series X Preferred Stock, Series Y Preferred Stock, Series Z Preferred Stock, Series Aa Preferred Stock, Series Cc Preferred Stock, Series Dd Preferred Stock, Series Ee Preferred Stock, Series Ff Preferred Stock, Series 1 Preferred Stock, Series 2 Preferred Stock, Series 3 Preferred Stock, Series 4 Preferred Stock, Series 5 Preferred Stock; Senior To: Common Stock, Any Capital Stock Expressly Junior To The Preferred Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

48,000,000

Prospectus Summary

Bank of America Corporation is offering 48,000,000 depositary shares (each representing a 1/1,000th interest in a share of underlying preferred stock) of its perpetual 6.000% Non-Cumulative Preferred Stock, Series GG, with a liquidation preference of $25 per depositary share and an annual dividend of $1.50 per depositary share paid quarterly on February 16, May 16, August 16, and November 16. The preferred stock is callable at par on or after May 16, 2023. Critically, dividends are non-cumulative: if the board does not declare a dividend for any period, that payment is permanently lost and Bank of America has no obligation to make it up in future periods. The Series GG Preferred Stock ranks senior to Bank of America's common stock and any junior capital, and on parity with its extensive existing preferred stock shelf (Series B through Series 5). It is junior to all of the corporation's existing and future debt. As a holding company issue, it is also structurally subordinated to the claims of creditors of Bank of America's operating subsidiaries, including Bank of America, N.A. A regulatory capital call provision allows full redemption at par within 90 days if a change in law or regulation causes the preferred stock to lose its treatment as additional Tier 1 capital under Federal Reserve rules — a meaningful risk for investors seeking long-duration income. At the $25 offering price, the Series GG yields exactly 6.00% annually ($0.375 per depositary share per quarter). Dividends are expected to qualify for the preferential 15%/20% qualified dividend income (QDI) rate for individual investors and for the 50% dividends-received deduction (DRD) for corporate holders under current law. Record dates are set as the first calendar day of the month in which each payment date falls. The dividend stopper provision blocks payments on common stock and junior preferred stock whenever Series GG dividends for the prior period have not been paid in full, but because dividends are non-cumulative, a missed payment on Series GG itself cannot be recovered by holders.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Bank of America does not pay the full dividend on the Series GG Preferred Stock for the immediately preceding dividend period, it is blocked from paying dividends on or repurchasing its common stock or any other junior stock, and from repurchasing parity preferred stock on a non-pro-rata basis.

Other Preferreds from Bank of America Corp

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 64 (Strong)