CHARLOTTE, N.C.--(BUSINESS WIRE)--Feb. 6, 2012--
Bank of America Corporation announced today that it has successfully
remarketed the remaining outstanding $140,922,000 in aggregate principal
amount of its Remarketable Floating Rate Junior Subordinated Notes due
2043 (the “Remarketable Floating Rate Notes”) and the remaining
outstanding $492,537,000 aggregate principal amount of its Remarketable
Fixed Rate Junior Subordinated Notes due 2043 (the “Remarketable Fixed
Rate Notes” and together with the Remarketable Floating Rate Notes, the
The company repurchased all of the Remarketable Notes in the
remarketings and expects to retire all of the Remarketable Notes.
Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as remarketing
agent in connection with the remarketings.
The company originally issued $700,100,000 in aggregate principal amount
of its Remarketable Floating Rate Junior Subordinated Notes due 2043 to
BAC Capital Trust XIII, a Delaware statutory trust (“Trust XIII”), in
connection with the February 2007 offering of Trust XIII’s Floating Rate
Preferred Hybrid Income Term Securities, and $850,100,000 in aggregate
principal amount of its Remarketable Fixed Rate Junior Subordinated
Notes due 2043 to BAC Capital Trust XIV, a Delaware statutory trust
(“Trust XIV”), in connection with the February 2007 offering of Trust
XIV’s Fixed to Floating Rate Preferred Hybrid Income Term Securities.
In connection with the remarketings of the Remarketable Notes, the
stated maturity was shortened to March 15, 2017, the interest rate on
the Remarketable Floating Rate Notes was reset to 5.822199 percent per
annum and the interest rate on the Remarketable Fixed Rate Notes was
reset to 6.404338 percent per annum. The remarketings will settle on
February 15, 2012.
The net proceeds from the remarketing of the Remarketable Floating Rate
Notes will be used to satisfy the obligations of Trust XIII under a
stock purchase contract agreement, pursuant to which Trust XIII is
obligated to purchase, and the company is obligated to sell, on March
15, 2012, approximately 1,410 shares of the company’s Floating Rate
Non-Cumulative Preferred Stock, Series F, $100,000 liquidation
preference per share, and the net proceeds from the remarketing of the
Remarketable Fixed Rate Notes will be used to satisfy the obligations of
Trust XIV under a stock purchase contract agreement, pursuant to which
Trust XIV is obligated to purchase, and the company is obligated to
sell, on March 15, 2012, approximately 4,926 shares of the company’s
Adjustable Rate Non-Cumulative Preferred Stock, Series G, $100,000
liquidation preference per share.
This press release is for informational purposes only and shall not
constitute an offer to sell or the solicitation of an offer to buy any
Bank of America
Bank of America is one of the world's largest 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 approximately 57 million consumer and small business
relationships with approximately 5,700 retail banking offices and
approximately 17,750 ATMs and award-winning online banking with 30
million active users. Bank of America is among the world's leading
wealth management companies and is a global leader in corporate and
investment banking and trading across a broad range of asset classes,
serving corporations, governments, institutions and individuals around
the world. Bank of America offers industry-leading support to
approximately 4 million small business owners through a suite of
innovative, easy-to-use online products and services.
The company serves clients through operations in more than 40 countries.
Bank of America Corporation stock (NYSE: BAC) is a component of the Dow
Jones Industrial Average and is listed on the New York Stock Exchange.
Certain statements in this news release represent the current
expectations, plans or forecasts of Bank of America and are
forward-looking. Forward-looking statements can be identified by the
fact that they do not relate strictly to historical or current facts.
These statements often use words like “expects,” “anticipates,”
“believes,” “estimates,” “targets,” “intends,” “plans,” “predict,”
“goal” and other similar expressions or future or conditional verbs such
as “will,” “may,” “might,” “should,” “would” and “could.” The
forward-looking statements made in this press release include, without
limitation, statements concerning the expected retirement of the
Remarketable Notes and the use of net proceeds from the remarketing. Forward-looking
statements speak only as of the date they are made, and Bank of America
undertakes 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.
These statements are not guarantees of future results or performance
and involve certain risks, uncertainties and assumptions that are
difficult to predict and are often beyond Bank of America’s control.
Actual outcomes and results may differ materially from those expressed
in, or implied by, any of these forward-looking statements. You should
not place undue reliance on any forward-looking statement and should
consider all of the following uncertainties and risks, as well as those
more fully discussed under Item 1A. “Risk Factors” of Bank of America’s
Quarterly Report on Form 10-Q for the quarterly period ended June 30,
2011, Item 1A. “Risk Factors” of Bank of America’s Annual Report on Form
10-K for the year ended December 31, 2010 and in any of Bank of
America’s other subsequent Securities and Exchange Commission filings:
the timing of the expected retirement of the Remarketable Notes and the
use of net proceeds from the remarketing.
For more Bank of America news, visit the Bank
of America newsroom.
Source: Bank of America
Investors May Contact:
Patricia Noneman, Bank of America,
Jonathan G. Blum, Bank of America, 1.212.449.3112
Jerry Dubrowski, Bank of America, 1.980.388.2840