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.