Bank of America announces conversion of common equivalent securities

By Angela McDaniels

Tacoma, Wash., Feb. 24 - Bank of America Corp. said its common equivalent securities will be automatically converted into common stock on a one-for-one basis, or a total of 1.29 billion shares.

The conversion was expected to take place at 9:30 a.m. ET on Feb. 24.

Each $15 common equivalent security consists of one depositary share, representing a 1/1,000th interest in a share of common equivalent junior preferred stock, and a contingent warrant to purchase 0.0467 of a share of common stock for a purchase price of $0.01 per share.

The related contingent warrants will expire without having become exercisable.

The conversion is possible because shareholders approved a proposal to increase the number of authorized common shares to 11.3 billion from 10 billion. Approximately 80% of the company's shares were voted during a special meeting on Feb. 23, and more than 76% were voted in favor of the proposal.

The securities were issued in December to help fund the repayment of the U.S. government's investment in the company through the Troubled Asset Relief Program.

Bank of America is a Charlotte, N.C.-based financial institution.

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