Summary
This 8-K filing from Bank of America Corporation (BAC) on August 26, 2005, details the successful public offering of $500 million in 6% Capital Securities by BAC Capital Trust VIII, effective August 17, 2005. The offering, structured as a trust preferred securities issuance, involved the sale of 20 million Capital Securities with a liquidation amount of $25 each. Furthermore, the Trust granted underwriters an over-allotment option for an additional 3 million securities, of which 1.2 million were exercised, raising an additional $30 million. The proceeds from this issuance are to be invested in Bank of America's 6% Junior Subordinated Notes due 2035.
Key Highlights
- 1Public offering of $500 million in 6% Capital Securities by BAC Capital Trust VIII.
- 2An additional $30 million was raised through the partial exercise of the underwriters' over-allotment option for Capital Securities.
- 3The Capital Securities represent undivided preferred beneficial interests in the assets of BAC Capital Trust VIII.
- 4Proceeds from the offering will be invested in Bank of America's 6% Junior Subordinated Notes due 2035.
- 5The transaction was approved by the Trustees of BAC Capital Trust VIII and a committee appointed by Bank of America's Board of Directors.
- 6The offering is part of a broader shelf registration statement allowing for up to $5 billion in preferred securities and subordinated notes from various BAC trusts.
Frequently Asked Questions
The Capital Securities are issued by BAC Capital Trust VIII and represent undivided preferred beneficial interests in the assets of the Trust. They carry a 6% interest rate and have a liquidation amount of $25 per security.
Bank of America, through BAC Capital Trust VIII, initially raised $500 million from the sale of 20 million Capital Securities. An additional $30 million was raised from the partial exercise of the underwriters' over-allotment option.
The proceeds generated from the sale of the Capital Securities and the Trust's Common Securities will be invested in Bank of America Corporation's 6% Junior Subordinated Notes due 2035.
This issuance is part of a broader shelf registration statement filed with the SEC that allows for the issuance of various preferred securities and subordinated notes by different Bank of America trusts. The specific structure involves a trust issuing securities that are backed by subordinated notes of the parent corporation.