Bank of America Corporation today announced an underwritten public offering of depositary shares, each representing a 1/25th interest in a share of its Non-Cumulative Perpetual Preferred Stock, Series U, with a liquidation preference of $25,000 per share (equivalent to $1,000 per depositary share). BofA Merrill Lynch will serve as sole book-running manager for the offering.
Bank of America intends to use any net proceeds it receives from the sale of the depositary shares to redeem its outstanding 7.25% Non-Cumulative Preferred Stock, Series J, 6.70% Noncumulative Perpetual Preferred Stock, Series 6, and 6.25% Noncumulative Perpetual Preferred Stock, Series 7. The redemption price for each of these preferred stock series will be 100 percent of the liquidation preference per share plus declared and unpaid dividends, as specified in the company’s certificate of incorporation. Notice of the redemption for each series, including applicable notice to holders of depositary shares representing fractional interests in the redeemed series of preferred stock, will be sent to holders at a future date in accordance with the company’s certificate of incorporation.
Bank of America has filed a shelf registration statement (including a prospectus) and a preliminary prospectus supplement relating to this offering with the Securities and Exchange Commission (SEC). Prospective investors should read the registration statement (including the prospectus), the preliminary prospectus supplement and other documents Bank of America has filed and will file with the SEC that are incorporated by reference into the registration statement for more complete information about Bank of America and the offering, including the risks associated with the securities and the offering. This press release does not constitute an offer to sell or the solicitation of any offer to buy securities of Bank of America, nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The offering will be made only by means of a prospectus supplement and accompanying prospectus. Copies of the registration statement, the preliminary prospectus supplement and other documents that Bank of America has filed with the SEC that are incorporated by reference into the registration statement are available at no charge by visiting EDGAR on the SEC website. Alternatively, a copy of the preliminary prospectus supplement and accompanying prospectus relating to these securities can be obtained by contacting BofA Merrill Lynch.