Bank of America to redeem $5.5 billion preferreds from two series

By Toni Weeks

San Luis Obispo, Calif., March 14 - The board of directors of Bank of America Corp. has authorized the redemption of about $5.5 billion of preferred stock, according to a press release.

The Charlotte, N.C.-based financial services company will redeem all outstanding shares of its 8.2% series H non-cumulative preferred stock on May 1 and all outstanding shares of its 8.625% series 8 non-cumulative preferred stock on May 28.

The board also authorized the repurchase of up to $5 billion of common stock through open-market purchases or privately negotiated transactions during the next four quarters.

According to the release, the Federal Reserve Board completed its 2013 comprehensive capital analysis and review of the company and did not object to the bank's capital plan, including the proposed capital actions.

"We have simplified our company, and we have more than adequate capital to support our strategic plans," chief executive officer Brian Moynihan said in the release. "We are well positioned to return excess capital to our shareholders."

The preferreds will be redeemed at par. A notice of redemption for each series will be sent to holders on April 1.

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