Bank of America announced that it will redeem the entire $3 billion principal balance of its 3.559% senior notes due April 2027. The redemption will be executed on April 23, 2026 at a price equal to 100 % of principal plus accrued and unpaid interest up to the redemption date.
The move is part of the bank’s ongoing liability‑management program. In March 2026 the bank also announced the redemption of $2.8 billion of senior notes, and a €1.75 billion redemption in the same month, indicating a systematic effort to refinance or retire higher‑coupon debt as market conditions evolve. By redeeming these notes, Bank of America is reducing its debt load and improving its leverage profile, which can lower interest expense and enhance regulatory capital ratios.
The redemption frees up capital that can be deployed in a variety of ways, including share repurchases, dividend increases, or strategic investments. It also signals confidence in the bank’s ability to access capital markets at favorable terms, reinforcing its financial flexibility for future capital deployment or shareholder returns.
The announcement comes just days before the bank’s first‑quarter 2026 earnings release on April 15, positioning the redemption as a key component of the bank’s broader financial strategy for the year.
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