8-KOther Events

BANK OF AMERICA CORP /DE/ 8-K Report (Apr 30, 2003)

Filed April 30, 2003For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

This 8-K filing by Bank of America Corporation (BAC) details a significant financing transaction involving BAC Capital Trust IV. Effective April 23, 2003, the Trust approved a public offering of 14 million Capital Securities, totaling $350 million, with an option for an additional $50 million. These Capital Securities represent preferred beneficial interests in the Trust's assets. Concurrently, Bank of America Corporation purchased the Trust's Common Securities and invested the proceeds from both offerings into the Corporation's 5 7/8% Junior Subordinated Notes due 2033. This move appears to be a strategic capital-raising effort, enhancing the company's financial structure.

Key Highlights

  • 1Bank of America Corporation is facilitating a $350 million public offering of Capital Securities through BAC Capital Trust IV, with potential for an additional $50 million via an over-allotment option.
  • 2The Capital Securities represent preferred beneficial interests in the assets of BAC Capital Trust IV.
  • 3Bank of America Corporation purchased the Common Securities of the Trust.
  • 4Proceeds from the sale of Capital and Common Securities were invested by the Trust into Bank of America's 5 7/8% Junior Subordinated Notes due 2033.
  • 5The transaction was approved by the Trustees of BAC Capital Trust IV and a committee appointed by the Board of Directors of Bank of America Corporation.
  • 6The offering was registered under a Form S-3 registration statement, declared effective on April 15, 2003, and closed on April 30, 2003.

Frequently Asked Questions

The primary purpose of this filing is to report a significant capital-raising transaction involving the public offering of Capital Securities by BAC Capital Trust IV, which is backed by Bank of America Corporation.

Bank of America Corporation is indirectly raising capital through the issuance of $350 million in Capital Securities, with an additional $50 million potential through an over-allotment option. These funds are channeled into the company via the purchase of its Junior Subordinated Notes.

The Capital Securities are preferred beneficial interests in the assets of BAC Capital Trust IV offered to the public. The Common Securities are held by Bank of America Corporation, representing the residual interest in the Trust.

The Junior Subordinated Notes have a maturity of 2033 and bear an interest rate of 5 7/8%.