B Of A Seen Bringing $1-2 Billion To Fund Equity Buyback

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  • 10 Nov 2003
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Bank of America will likely issue $1-2 billion of subordinated debt to buy back equity shares it plans to issue to purchase FleetBoston Financial, according to a pair of analysts who follow the banking sector. The new subordinated debt would likely qualify as "Tier 2" capital, enabling B of A to meet regulatory requirements, according to Joe Labriola, head of U.S. credit research at BNP Paribas. "Within a 90 day window [after an acquisition closes] you always see the acquiring bank come and issue Tier 2 capital," he says. Jeff Kane, global head of high-grade syndicate at B of A, declined comment on any possible issuance and a call to Tom Houghton, the bank's senior v.p. for domestic funding, was not returned.

While the increased supply might cause three to five basis points of widening on outstanding B of A issues, it should recover that premium in less than a quarter, says David Hendler, analyst at CreditSights, who is bullish on the credit in the wake of the proposed merger. "There's a FleetBoston on every corner in Boston, so we think they'll keep their customers, and they'll also get more money out of those customers because B of A has better products," he says.

  • 10 Nov 2003

New! GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Citi 7,171 21 10.72
2 Bank of America Merrill Lynch (BAML) 6,901 20 10.32
3 JP Morgan 4,776 10 7.14
4 Credit Suisse 4,718 9 7.05
5 Lloyds Bank 4,420 14 6.61

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Oct 2016
1 Wells Fargo Securities 68,611.22 170 11.38%
2 Bank of America Merrill Lynch 59,056.08 169 9.80%
3 JPMorgan 56,861.85 163 9.43%
4 Citi 56,521.05 165 9.38%
5 Credit Suisse 44,888.95 123 7.45%