Bank of America to Redeem $6.15 Billion in Senior Notes Early
📣 The Announcement
Bank of America Corporation (NYSE: BAC) is paying off some of its debt ahead of schedule. On July 22, 2026, it will redeem two batches of senior notes that were otherwise due in July 2027.
👉 The two batches: $400,000,000 of Floating Rate Senior Notes (CUSIP 06051GJV2) and $5,750,000,000 of 1.734% Fixed/Floating Rate Senior Notes (CUSIP 06051GJS9). That's about $6.15 billion in total being retired early.
Holders will be paid 100% of the principal plus any interest earned up to (but not including) the July 22 redemption date.
🏢 Company Context
👉 In simple terms, Bank of America is one of the world's biggest banks, serving everyday consumers, small businesses and giant corporations alike.
It serves nearly 70 million clients through roughly 3,500 retail financial centers and about 15,000 ATMs, with around 60 million verified digital users. It is also the #1 small business lender in the United States according to the FDIC, supporting about 4 million small business households.
The bank operates across the U.S., its territories, and more than 35 countries and jurisdictions.
💥 Why It Matters
When a company "redeems" a bond, it is repaying the money it borrowed. "Senior notes" are simply a form of that borrowing — IOUs the bank sold to investors, with "senior" meaning these lenders get repaid ahead of more junior creditors if things go wrong.
👉 Retiring $6.15 billion of debt a year early is a sign of financial strength and active balance-sheet management. Banks do this to fine-tune how much they owe, manage interest costs, and meet regulatory capital rules.
For bondholders, it means their investment ends sooner than expected — they get their principal back, but the steady interest payments stop.
📊 By The Numbers
- $400,000,000 — Floating Rate Senior Notes being redeemed (CUSIP 06051GJV2)
- $5,750,000,000 — 1.734% Fixed/Floating Rate Senior Notes being redeemed (CUSIP 06051GJS9)
- ~$6.15 billion — combined principal retired
- 100% — redemption price (par), plus accrued and unpaid interest
- July 22, 2026 — the redemption date; interest stops accruing that day
- July 2027 — the original maturity date being cut short
🔍 The Details
A quick jargon note: a "floating rate" note pays interest that moves up and down with market rates, while a "fixed/floating" note starts with a set rate (here 1.734%) and later switches to a floating one. Redeeming them now ends both.
👉 Payment will flow through The Depository Trust Company (DTC), the central clearinghouse that handles most U.S. securities behind the scenes. The Bank of New York Mellon Trust Company, N.A. acts as trustee and paying agent — the middleman that makes sure investors actually get paid.
🔮 What's Next
On July 22, the money moves and these two note series effectively disappear from Bank of America's books. There is no further action for most investors, since the process runs automatically through DTC and the paying agent.
Investors with questions can reach Lee McEntire at 1.980.388.6780, or Jonathan G. Blum (Fixed Income) at 1.212.449.3112. Reporters can contact Jocelyn Seidenfeld at 1.646.743.3356.
⚖️ Upside & Risks
👍 Repaying debt early signals confidence and a strong balance sheet, and it can lower the bank's future interest expense.
⚠️ For the affected bondholders, the downside is reinvestment risk — they now have cash to redeploy, possibly at less attractive rates than the notes were paying. The press release also carries standard forward-looking-statement cautions, pointing readers to the risk factors in the bank's 2025 Form 10-K.
🧠 The Analogy
Think of paying off your car loan a year early. You had until 2027 to finish, but you write one big check now to settle it. Your lender gets every dollar owed plus interest to that day — and then the monthly payments simply stop. Bank of America is doing exactly that, just with $6.15 billion.
🧩 Final Takeaway
Bank of America is retiring roughly $6.15 billion of senior notes on July 22, 2026, a year before they were due, paying holders full principal plus accrued interest. It's a routine but confidence-signaling move that trims the bank's debt load ahead of schedule.
Original release
CHARLOTTE, N.C., July 14, 2026 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem on July 22, 2026 all $400,000,000 principal amount outstanding of its Floating Rate Senior Notes, due July 2027 (CUSIP No. 06051GJV2) (the "Floating Rate Notes"), and all $5,750,000,000 principal amount outstanding of its 1.734% Fixed/Floating Rate Senior Notes, due July 2027 (CUSIP No. 06051GJS9) (the "Fixed/Floating Rate Notes" and, together with the Floating Rate Notes, the "Notes").
The redemption price for each series of the Notes will be equal to 100% of the principal amount of such series, plus accrued and unpaid interest to, but excluding, the redemption date of July 22, 2026. Interest on each series of the Notes will cease to accrue on the redemption date.
Payment of the redemption price for the Notes will be made through the facilities of The Depository Trust Company. The Bank of New York Mellon Trust Company, N.A. is the trustee and paying agent for the Notes.
Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 60 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries and/or jurisdictions. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
Forward-looking statements
Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control. You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, and in any of our subsequent Securities and Exchange Commission filings. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.
Investors May Contact:
Lee McEntire, Bank of AmericaPhone: 1.980.388.6780[email protected]
Jonathan G. Blum, Bank of America (Fixed Income)Phone: 1.212.449.3112[email protected]
Reporters May Contact:
Jocelyn Seidenfeld, Bank of AmericaPhone: 1.646.743.3356[email protected]
SOURCE Bank of America Corporation