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

BondWeek is the leading news publication for fixed-income professionals, covering new deals, structures, asset-backed securities, industry and market activity.

  • 10 Nov 2003
Email a colleague
Request a PDF

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

GlobalCapital European securitization league table

Rank Lead Manager/Arranger Share % by Volume
1 Societe Generale 15.35
2 Rabobank 14.41
3 Morgan Stanley 11.73
4 Barclays 8.99
5 Credit Agricole 7.57

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 27 Feb 2017
1 Wells Fargo Securities 11,897.40 33 11.83%
2 Bank of America Merrill Lynch 9,837.56 29 9.78%
3 Citi 9,714.54 32 9.66%
4 JPMorgan 7,997.38 24 7.95%
5 Credit Suisse 6,335.67 14 6.30%