Got Vaseline? BOA leads the way for the "retail" investor
Bank of America to sell $3 bln notes to retail investors
NEW YORK, Jan 30 (Reuters) - In a move that may ease the
ability of individual investors to buy corporate bonds, Bank of
America Corp. <BAC.N>, the No. 1 U.S. bank, said on Tuesday it
will sell $3 billion of unsecured, medium-term notes, and will
target the sale to individual, retail investors.
The minimum investment in the notes, known as InterNotes,
will be $1,000. The notes will carry several different interest
rates, maturity dates, and interest payment options. Bank of
America did not specify the terms or timing of the sale.
Incapital LLC, a Chicago-based investment bank, will help
Banc of America Securities LLC sell the notes. "They enable
large corporate issuers to efficiently issue debt securities
tailored to the needs of individual investors," said Thomas
Ricketts, Incapital's president, in a press statement.
Corporations usually sell bonds to institutional investors
such as insurance companies, pension funds and mutual funds.
Many individual investors, especially with small portfolios, do
not or are advised not to buy individual corporate bonds, in
part because risks and transaction fees can be high.
Credit rating agency rates Bank of America's existing
senior unsecured debt "Aa2," its third highest investment
grade, while another agency, Standard & Poor's, rates it
"A-plus," roughly two notches lower.
859-1662, jon.stempel@reuters.com ))
REUTERS
Rtr 08:14 01-30-01 |
