Bank of America Corp (NYSE:BAC) submits redemption notices


Dallas, Texas 07/05/2013 (Financialstrend) – Bank of America Corp (NYSE:BAC) closed in the previous trading session at $12.83 after going down by 0.54% (or -$0.07). The intra-day range of the stock is $12.73-$12.84. The market capitalization of the company is $138.36 billion.

Bank of America Corporation, a financial holding company and a bank holding company, announced today that it has submitted redemption notices for all the outstanding depository shares that represent interests in its 7.25% Non-Cumulative Preferred Stock (Series J) and for all the corresponding depositary shares that represent fractional interests in the Series J Depositary Shares (the Series J Preferred Stock).

On 21 May, 2013, the company announced that it intends to use net proceeds from its offering Series U, its Non-Cumulative Perpetual Preferred Stock, in order to fund this redemption.

The Series J Depositary Shares that represent a 1/1000th interest in one share of the Series J Preferred Stock will be redeemed at a redemption price of $25 per depositary share. All the currently outstanding Series J Depositary Shares, 38,052,466 in total, will be redeemed on 1 August, 2013, for a net redemption price of $951,311,650.

Since the date of redemption for the Series J Depositary Shares is also the date of the dividend payment, the redemption price of $25 per depositary share does not involve any unpaid and declared dividends. The payment of declared dividends of approximately $0.45 per depositary share will take place separately on 1 August, 2013, with a record date of 15 July, 2013 for the full current quarterly dividend period. This period spans from and including 1 May, 2013 up to but excluding 1 August, 2013.

The depositary shares will be redeemed according to the procedure of the Depository Trust Company. Computershare Trust Company and Computershare, Inc. will collectively pay for Series J Depositary Shares to DTC.