Bank of America exchanges stock, notes for $2.69 billion preferreds

By Angela McDaniels

Tacoma, Wash., Nov. 17 - Bank of America Corp. will issue common stock and notes in exchange for $2.69 billion of its outstanding preferred stock and trust preferred securities, according to an 8-K filing with the Securities and Exchange Commission.

The securities covered by the exchanges are noted in the table below. They include $181.85 million of convertible preferreds.

The exchanges are being made under separately negotiated agreements made on Nov. 4 through Nov. 17. The exchanges that have not already settled are expected to do so by Nov. 23.

In total, the company will issue 185,482,705 shares and $998.1 million principal amount of notes in the exchanges.

The notes include $273.9 million of 5.625% notes due Oct. 14, 2016, $660.9 million of 6% notes due Sept. 1, 2017 and $63.3 million of 6.5% notes due Aug. 1, 2016.

The shares to be issued in the exchanges represent 1.83% of the company's outstanding common stock as of Oct. 31.

The Charlotte, N.C.-based financial services company expects the exchanges to increase its tier 1 common capital by $1.88 billion and its tier 1 common capital ratio by 14 basis points under Basel I.

Bank of America exchanges

Title of security Amount exchanged

6.204% non-cumulative preferred stock, series D $2,875,000

Floating-rate non-cumulative preferreds, series E $11,625,000

7.25% non-cumulative preferreds, series J $87,500

Fixed-to-floating-rate non-cumulative preferreds, series K $105,915,000

7.25% non-cumulative perpetual convertible preferreds, series L $181,847,000

Fixed-to-Floating-rate non-cumulative preferreds, series M $66.7 million

Floating-rate non-cumulative preferreds, series 1 $19,283,625

Floating-rate non-cumulative preferreds, series 2 $100,736,825

6.375% non-cumulative preferreds, series 3 $4.25 million

Floating-rate non-cumulative preferreds, series 4 $29,588,775

Floating-rate non-cumulative preferreds, series 5 $67,375,000

6.7% non-cumulative preferreds, series 6 $112,500

7% capital securities of BAC Capital Trust II $250,000

5.875% capital securities of BAC Capital Trust IV $1,125,000

6% capital securities of BAC Capital Trust V $500,000

5.625% capital securities of BAC Capital Trust VI $245.04 million

5.25% capital securities of BAC Capital Trust VII $758,467,000

6% capital securities of BAC Capital Trust VIII $500,000

6.25% capital securities of BAC Capital Trust X $2,125,000

6.625% capital securities of BAC Capital Trust XI $65,185,000

Floating-rate capital securities of BAC Capital Trust XV $412,497,000

7.83% capital securities of NB Capital Trust II $40,524,000

Floating-rate capital securities of NB Capital Trust III $182,789,000

8.25% capital securities of NB Capital Trust IV $23,594,000

7.92% capital securities of Fleet Capital Trust II $46.72 million

Floating-rate capital securities of Fleet Capital Trust V $115,964,000

Floating-rate capital securities of BankBoston Capital Trust III $117,535,000

Floating-rate capital securities of BankBoston Capital Trust IV $80,986,000

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