BofA (BAC) Completes Common/Preferred Exchange
Tweet
Share
E-mailGet Alerts BAC Hot Sheet
Join SI Premium – FREE
On December 11, December 2, December 5, December 6, December 7, December 8, December 9, December 12, December 13, December 14 and December 15, 2011, Bank of America Corporation (NYSE: BAC) entered into separate agreements with certain institutional preferred and trust preferred security holders pursuant to which the Registrant and each such security holder agreed to exchange shares, or depository shares representing fractional interests in shares, of various series of the Registrant's outstanding preferred stock, par value $0.01 per share, or trust preferred securities or hybrid income securities of various trusts formed by or on behalf of the Registrant or its predecessor companies, as applicable, for an aggregate of 88,988,700 shares of the Registrant's common stock, par value $0.01 per share and an aggregate principal amount of $885.4 million of senior notes of the Registrant.
Pursuant to the Exchange Agreements, the Registrant will receive outstanding shares of Preferred Stock with an aggregate liquidation preference of approximately $179.1 million and Trust Preferred Securities with an aggregate liquidation preference of approximately $1.6 billion. To the extent the exchanges are not already settled, they are expected to settle on or before December 22, 2011.
These exchanges represent the completion of the Registrant's announced intention to explore the issuance of up to 400 million shares of common stock and $3 billion of senior notes in exchange for shares of preferred stock and certain trust preferred capital debt securities issued by unconsolidated trust companies, in privately negotiated transactions. In the aggregate, the Registrant expects that the exchanges reported in this report and in the Registrant's Current Reports on Form 8-K filed under this Item 3.02 on December 2, 2011 and November 17, 2011, collectively, will result in an increase of approximately $3.9 billion in Tier 1 common capital, and increase the Registrant's Tier 1 common capital ratio by approximately 29 basis points under Basel I.
In the aggregate, the Registrant will receive approximately $5.8 billion in liquidation preference of Preferred Stock and Trust Preferred Securities in the privately negotiated transactions in exchange for 400 million shares of its common stock and approximately $2.3 billion aggregate principal amount of its Senior Notes. The Senior Notes consist of $78.3 million of 7.375% Notes due May 15, 2014, $867.4 million of 6.500% Notes due August 1, 2016, $306.1 million of 5.625% Notes due October 14, 2016, $709.9 million of 6.000% Notes due September 1, 2017 and $364.2 million of 7.625% Notes due June 1, 2019.
Pursuant to the Exchange Agreements, the Registrant will receive outstanding shares of Preferred Stock with an aggregate liquidation preference of approximately $179.1 million and Trust Preferred Securities with an aggregate liquidation preference of approximately $1.6 billion. To the extent the exchanges are not already settled, they are expected to settle on or before December 22, 2011.
These exchanges represent the completion of the Registrant's announced intention to explore the issuance of up to 400 million shares of common stock and $3 billion of senior notes in exchange for shares of preferred stock and certain trust preferred capital debt securities issued by unconsolidated trust companies, in privately negotiated transactions. In the aggregate, the Registrant expects that the exchanges reported in this report and in the Registrant's Current Reports on Form 8-K filed under this Item 3.02 on December 2, 2011 and November 17, 2011, collectively, will result in an increase of approximately $3.9 billion in Tier 1 common capital, and increase the Registrant's Tier 1 common capital ratio by approximately 29 basis points under Basel I.
In the aggregate, the Registrant will receive approximately $5.8 billion in liquidation preference of Preferred Stock and Trust Preferred Securities in the privately negotiated transactions in exchange for 400 million shares of its common stock and approximately $2.3 billion aggregate principal amount of its Senior Notes. The Senior Notes consist of $78.3 million of 7.375% Notes due May 15, 2014, $867.4 million of 6.500% Notes due August 1, 2016, $306.1 million of 5.625% Notes due October 14, 2016, $709.9 million of 6.000% Notes due September 1, 2017 and $364.2 million of 7.625% Notes due June 1, 2019.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- SEC accuses ex-BofA senior banker Satsky of insider trading - Bloomberg
- CoStar Group acquires Zonda for $800M, adding new home data
- Oruka Therapeutics (ORKA) files $1B mixed shelf
Create E-mail Alert Related Categories
Corporate News, Equity OfferingsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
