8-KOther EventsExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Sep 18, 2007)

Filed September 18, 2007For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

This 8-K filing from Bank of America Corporation reports on the company's issuance of additional debt securities through several underwriting agreements entered into between September 11 and September 13, 2007. Specifically, the company increased its outstanding Floating Rate Senior Notes due September 2012 by a total of $225 million and its 5.375% Senior Notes due September 2012 by $350 million. These issuances represent "reopenings" of existing debt series, leveraging a previously established shelf registration statement. This activity indicates Bank of America's ongoing need for capital and its ability to access public debt markets to fund its operations and strategic initiatives during this period, which was marked by increasing financial market stress.

Key Highlights

  • 1Bank of America issued an additional $225 million in Floating Rate Senior Notes due September 2012.
  • 2Bank of America issued an additional $350 million in 5.375% Senior Notes due September 2012.
  • 3These issuances were structured as "reopenings" of existing debt series.
  • 4The debt offerings were conducted under a shelf registration statement filed previously on Form S-3.
  • 5Underwriting agreements were executed on September 11, 12, and 13, 2007.
  • 6Legal opinions on the validity of these new debt issuances were obtained from Helms Mulliss & Wicker, PLLC.

Frequently Asked Questions

Bank of America issued a total of $225 million in Floating Rate Senior Notes and $350 million in 5.375% Senior Notes, bringing the total new debt issued to $575 million.

A debt reopening means that the company is issuing more of a debt security that was previously issued and is already outstanding. This is often done to increase the size of an existing debt issue, making it more liquid and potentially more attractive to investors.

Issuing new debt is a common way for large corporations like Bank of America to raise capital for various purposes, including funding operations, acquisitions, or meeting regulatory capital requirements. In September 2007, the financial markets were experiencing significant stress, and companies were actively managing their liquidity and capital structures.

Both the Floating Rate Senior Notes and the 5.375% Senior Notes issued in this filing have a maturity date of September 2012.