8-KOther Events

BANK OF AMERICA CORP /DE/ 8-K Report (Feb 17, 2004)

Filed February 17, 2004For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) filed an 8-K report on February 17, 2004, detailing a significant debt offering. On February 6, 2004, a committee of the Board of Directors approved the public offering of $1.5 billion in Floating Rate Callable Senior Notes due 2007. This offering was made to various underwriters under a Senior Underwriting Agreement, and the terms were further detailed in a Prospectus Supplement. The issuance of these Senior Notes was conducted under Bank of America's existing shelf registration statement on Form S-3 (Registration No. 333-97197), which allows for the delayed offering of up to $20 billion in various unsecured debt securities and equity. This filing indicates the company's proactive approach to managing its capital structure and funding needs through the debt markets.

Key Highlights

  • 1Bank of America Corporation announced the public offering of $1.5 billion in Floating Rate Callable Senior Notes due 2007.
  • 2The offering was approved by a committee of the Board of Directors on February 6, 2004.
  • 3An underwriting agreement was entered into with Senior Underwriters for the sale of these notes.
  • 4The terms of the notes and offering are detailed in a Prospectus Supplement dated February 6, 2004.
  • 5The issuance falls under an existing shelf registration statement (Form S-3, Reg. No. 333-97197) allowing for delayed offerings of up to $20 billion.
  • 6This action reflects ongoing capital markets activity and debt management by Bank of America.

Frequently Asked Questions

This 8-K filing announces a significant event for Bank of America: the approval and imminent public offering of $1.5 billion in Floating Rate Callable Senior Notes due 2007. It provides details on the terms and the process of this debt issuance.

The Senior Notes are Floating Rate Callable Senior Notes with a maturity date in 2007. The filing specifies the aggregate principal amount being offered is $1.5 billion. Further details on the floating rate mechanism and call provisions would be found in the referenced Prospectus Supplement and exhibits.

Issuing new debt is a common corporate finance strategy for large institutions like Bank of America. It can be used to fund operations, manage liquidity, refinance existing debt, support growth initiatives, or optimize the company's capital structure. This specific issuance indicates a need to raise substantial capital through the debt markets.

A shelf registration statement (like the Form S-3 mentioned) allows a company to register securities it plans to sell in the future. This enables the company to 'shelf' the registration and then 'take down' portions of it for sale when market conditions are favorable or when capital is needed. Bank of America's use of its $20 billion shelf registration indicates its flexibility in accessing capital markets efficiently.