Bank of America annouced Thursday that it has agreed to issue about 185 million shares of common stock and nearly $1 billion in senior debt as part of a swap for preferred stock and junior debt announced earlier this month.
The bank will redeem preferred stock valued at $590 million and trust preferred securities valued at $2.1 billion. The move will increase Tier 1 common capital by about $1.88 billion, the bank said in a securities filing.
Based on the stock's market price in recent days, the bank used about $2.1 billion in common stock and notes to retire securities and preferred stock with par value of about $2.7 billion.
In a securities filing earlier this month, Bank of America said it would consider issuing up to 400 million new shares and $3 billion in senior notes. A spokesman said Thursday the process is ongoing.
Thursday, November 17, 2011
Bank of America announces first terms of stock swap
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1 comments:
The timing of this layoff couldn't be more cruel and thoughtless for the affected employees. BofA could have waited till January to inform the affected employees so they could at least enjoy the holidays.But then, that is typical of today's megabusinesses whose only concern is for making as much profit as they can in order to justify the outragious salaries and bonuses they lavish on their executives. (Screw the little guy and give me my bonus)
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