Terms

Series

Series LL

Liquidation Preference

$25.00

Coupon Rate

5%

Rate Type

Fixed

Annual Dividend

$1.25

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

September 17, 2024

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 E Preferred Stock, Series F Preferred Stock, Series G Preferred Stock, Series L Preferred Stock, Series T Preferred Stock, Series U Preferred Stock, Series V 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 Gg Preferred Stock, Series Hh Preferred Stock, Series Jj Preferred Stock, Series Kk Preferred Stock, Series 1 Preferred Stock, Series 2 Preferred Stock, Series 4 Preferred Stock, Series 5 Preferred Stock; Senior To: Common Stock, Any Capital Stock Expressly Made 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

52,400,000

Prospectus Summary

Bank of America Corporation is offering 52,400,000 depositary shares, each representing a 1/1,000th interest in a share of its Series LL perpetual 5.000% Non-Cumulative Preferred Stock, with a liquidation preference of $25 per depositary share. The fixed annual dividend of $1.25 per depositary share ($0.3125 quarterly) is payable on March 17, June 17, September 17, and December 17, beginning December 17, 2019. Critically, dividends are non-cumulative: if the board does not declare a dividend for any quarter, that payment is permanently lost and Bank of America has no obligation to make it up in future periods. The Series LL Preferred Stock ranks pari passu with over two dozen other Bank of America preferred series and senior to common stock, but is junior to all of the company's existing and future debt obligations. Because this is a holding company issuance, it is structurally subordinated to the claims of creditors of operating subsidiaries, including Bank of America, N.A. — the preferred holders' access to subsidiary assets is indirect. Bank of America may redeem the stock at par within 90 days of a 'capital treatment event' — meaning a regulatory or legislative change that causes the preferred to lose its status as additional Tier 1 capital — giving the issuer an escape valve if capital rules change unfavorably. Optional redemption at $25 per depositary share is available on or after September 17, 2024, subject to Federal Reserve prior approval. At the $25 liquidation preference, the Series LL yields exactly 5.00% annually. Dividends are expected to qualify as qualified dividend income (QDI) for individual holders taxed at preferential 15%/20% rates, and for the dividends-received deduction (DRD) for eligible corporate holders. The record date is the first day of the calendar month in which each payment date falls (or a date set by the board within 10–60 days prior). The dividend stopper mechanism means that if Bank of America skips a Series LL dividend, it cannot pay dividends on or repurchase common stock or junior preferred stock for that period, providing holders a degree of indirect protection against being passed over while junior stockholders receive payments.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Bank of America has not paid the most recent full quarterly dividend on the Series LL Preferred Stock, it is blocked from paying dividends on or repurchasing its common stock and other junior stock, and from repurchasing parity preferred stock (other than on a pro rata basis), for the duration of that dividend period.

Other Preferreds from Bank of America Corp

Div Score Breakdown

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