Bank of America to redeem $2.5 billion in senior notes ahead of maturity

CHARLOTTE - Bank of America Corporation (NYSE:BAC), a financial giant with a market capitalization of $369.62 billion and a P/E ratio of 13.62, announced Thursday it will redeem $2.5 billion in 1.197% Fixed/Floating Rate Senior Notes ahead of their original October 2026 maturity date.

The redemption will take place on October 24, 2025, with the bank paying 100% of the principal amount plus accrued and unpaid interest to noteholders. Interest on the notes will cease to accrue on the redemption date, according to the company’s statement.

The Depository Trust Company will facilitate the payment, with The Bank of New York Mellon Trust Company, N.A. serving as trustee and paying agent for the notes.

The early redemption applies specifically to notes with CUSIP number 06051GJK6, which were originally set to mature in October 2026.

Bank of America serves approximately 70 million consumer and small business clients across the United States through its network of approximately 3,600 retail financial centers and 15,000 ATMs. The financial institution also provides wealth management, corporate and investment banking services globally.

The announcement was made in a press release issued by the company.

In other recent news, Bank of America reported stronger-than-expected earnings for the third quarter of 2025. The bank’s earnings per share reached $1.06, surpassing the forecast of $0.95, while revenue came in at $28.09 billion, exceeding the expected $27.48 billion. UBS has reiterated its Buy rating for Bank of America, with a price target of $57.00, highlighting the significance of the earnings per share crossing the "psychological" hurdle of one dollar. TD Cowen also maintained a Buy rating, raising its price target from $59.00 to $61.00 following what it described as a "textbook quarter." These developments reflect positively on the bank’s financial performance and analyst sentiment.

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