Summary
This 8-K filing from Bank of America (BAC) on December 18, 2008, reports on the issuance of an additional $1.5 billion in 3.125% Senior Notes due June 2012. These notes, together with previously issued notes, form a single series. A significant aspect of this offering is that the notes are guaranteed by the Federal Deposit Insurance Corporation (FDIC) under its Temporary Liquidity Guarantee Program (TLGP). This guarantee provides an added layer of security for investors, mitigating some of the perceived risk associated with the financial institution during the heightened uncertainty of late 2008. The filing also details the Written Terms Agreement entered into on December 15, 2008, with the initial purchasers for these notes. Investors should note that the terms of this offering are consistent with prior issuances under BAC's Medium-Term Note Program and are supplemented by specific pricing details. The FDIC guarantee is a crucial factor for investors, signaling an effort to bolster confidence in BAC's debt offerings amidst market stress.
Key Highlights
- 1Bank of America issued an additional $1.5 billion in 3.125% Senior Notes due June 2012 on December 18, 2008.
- 2These newly issued notes will be combined with $6.75 billion previously issued on December 4, 2008, to form a single series of notes.
- 3The Senior Notes are guaranteed by the Federal Deposit Insurance Corporation (FDIC) under its Temporary Liquidity Guarantee Program (TLGP).
- 4The FDIC guarantee is a key feature, intended to enhance investor confidence in BAC's debt obligations.
- 5A Written Terms Agreement with initial purchasers for the notes was executed on December 15, 2008.
- 6The offering is part of Bank of America's established Medium-Term Note Program, Series L.
- 7This filing provides details on the terms of the notes and the agreement for their sale.