Summary
This Form 8-K filing from Bank of America Corporation, filed on September 14, 2006, primarily details two significant financial events. Firstly, the company has issued new debt under its existing Euro Medium-Term Note Program, specifically Euro 1,250,000,000 of Floating Rate Senior Notes due 2013. This issuance indicates ongoing access to international capital markets for funding. Secondly, and more significantly for equity investors, Bank of America finalized the terms and public offering of its 6.204% Non-Cumulative Preferred Stock, Series D, structured as Depositary Shares. This offering aims to raise capital and will introduce certain dividend restrictions on the company's common stock and other junior stock if preferred dividends are not paid.
Key Highlights
- 1Bank of America issued €1.25 billion in Floating Rate Senior Notes due 2013 under its Euro Medium-Term Note Program.
- 2As of September 12, 2006, approximately $9.9 billion remained available for issuance under the Euro Medium-Term Note Program.
- 3The company completed the terms for a public offering of 30,000,000 Depositary Shares, each representing a 1/1,000th interest in a share of Series D Preferred Stock.
- 4The Series D Preferred Stock carries a fixed dividend rate of 6.204% and is non-cumulative.
- 5The issuance of Series D Preferred Stock introduces restrictions on dividends and repurchases of common stock (Junior Stock) if the preferred dividends are not paid.
- 6The offering of Depositary Shares included an over-allotment option for underwriters to purchase an additional 4,500,000 Depositary Shares.