Bank of America Corporation will redeem all outstanding shares of its Fixed‑to‑Floating Rate Non‑Cumulative Preferred Stock, Series DD (CUSIP 060505EV2), and the corresponding depositary shares (CUSIP 060505EU4) on March 10, 2026. The redemption price is $1,000 per depositary share, and holders of record on February 15, 2026 will receive the declared dividend of $31.50 per share for the semi‑annual period from September 10, 2025 to March 10, 2026, paid on the redemption date. Dividends on the redeemed shares cease to accrue once the shares are redeemed.
The redemption is a scheduled, non‑callable event that occurs when the Series DD issue reaches its contractual call date. Prior to redemption, the preferred stock carried a fixed dividend rate of 6.300% through March 10, 2026, after which it would have transitioned to a floating rate linked to SOFR plus a spread. By redeeming the shares at par, the bank is retiring a higher‑cost liability in line with its routine capital‑management program.
Redeeming the Series DD preferred stock reduces Bank of America’s preferred equity obligations, improving its capital structure and freeing capital that can be deployed to lending, investment‑banking activities, or other strategic initiatives. The move aligns with the bank’s broader focus on higher‑margin consumer credit, data, and artificial‑intelligence services, and it signals confidence in the bank’s ability to meet its debt commitments and manage its balance sheet efficiently.
The redemption follows a similar action taken in March 2025 when the bank redeemed its Series AA preferred stock. No significant market reaction has been reported, indicating that the event is viewed as a routine capital‑housekeeping activity rather than a surprise or strategic shift. Nonetheless, the transaction is a notable capital‑structure adjustment that may influence future capital‑ratio targets and funding strategies.
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