Bank of America Corp. Announces Early Redemption of $3 Billion Senior Notes

Bank of America Corporation (NASDAQ: BAC) disclosed that it will redeem $3 billion of its 5.080 % fixed/floating‑rate senior notes due January 2027. The redemption will occur on January 20, 2026, and the company will pay the full principal amount to all holders of the notes.

The announcement was issued on January 10, 2026 and was covered by multiple financial news outlets, including Marketscreener, Yahoo Finance, InvestingNews, Investing.com, and CoinCentral. The news coincided with a modest intraday decline in BAC’s stock, which traded near its recent high of $55.85 on January 8, 2026.

Impact on Share Price

  • Pre‑announcement price: BAC shares were trading near $57.55, the 52‑week high recorded on January 4, 2026.
  • Post‑announcement price: After the announcement, the share price settled around $55.85 and experienced a modest daily decline.
  • The early redemption is expected to improve the company’s debt profile by reducing interest expense associated with the senior notes.

Company Context

Bank of America is a leading financial holding company listed on the New York Stock Exchange. Its operations span retail, investment, and commercial banking services worldwide. The firm’s market capitalization is approximately $424.7 billion, and its price‑to‑earnings ratio stands at 14.99.

  • Housing Market Commentary: On the same day, Bank of America’s CEO addressed the housing market, stating that the “lock‑in effect” is not the primary cause of the current slowdown, noting that half of households do not have a mortgage.
  • Corporate Social Responsibility: A separate announcement highlighted a $1 million grant to the Pacific Palisades YMCA to aid reconstruction after a wildfire.
  • Market Analysis: Bank of America analysts continued to provide equity research on other companies, upgrading FedEx to a “buy” rating and adjusting target prices for Ulta Beauty and Sigma Lithium.

The early redemption aligns with the company’s broader strategy to manage its debt maturities and maintain a strong balance sheet.