8-KOther EventsExhibits & Filings

BANK OF AMERICA CORP /DE/ 8-K Report, Corporate Update (Apr 1, 2013)

Filed April 1, 2013For Securities:BACBAC-PBBAC-PKBAC-PLBAC-PMBAC-PNBAC-PSBML-PJBAC-PEBAC-PPBAC-PQBACRPBML-PGBML-PHBML-PLBAC-POMER-PK

Summary

Bank of America Corporation (BAC) announced on April 1, 2013, its intention to redeem several series of preferred stock and preferred securities. This proactive move indicates the company is actively managing its capital structure and potentially seeking to reduce its cost of capital by retiring higher-yielding securities. The specific securities targeted for redemption include the 8.20% Non-Cumulative Preferred Stock, Series H; the 8.625% Non-Cumulative Preferred Stock, Series 8; and the Progress Capital Trust II 11.445% Preferred Securities. Investors should note that this redemption is a strategic financial decision by Bank of America. While the filing itself does not detail the reasons beyond managing capital, such actions often align with improving financial flexibility, reducing interest expenses, or preparing for future refinancing opportunities at more favorable rates. The full details regarding redemption prices, dates, and procedures are available in the attached news release, which serves as a key document for understanding the financial implications for holders of these specific securities.

Key Highlights

  • 1Bank of America (BAC) announced the redemption of multiple preferred stock and preferred securities series.
  • 2Securities to be redeemed include Series H (8.20%) and Series 8 (8.625%) Non-Cumulative Preferred Stock.
  • 3Progress Capital Trust II 11.445% Preferred Securities are also slated for redemption.
  • 4The redemption activity suggests proactive capital structure management by BAC.
  • 5This move could signal efforts to reduce the company's overall cost of capital.
  • 6Detailed redemption information (prices, dates, dividends) is available in an attached news release (Exhibit 99.1).

Frequently Asked Questions

The primary event is Bank of America Corporation's announcement of its intent to redeem several series of its preferred stock and preferred securities.

The securities being redeemed are the 8.20% Non-Cumulative Preferred Stock, Series H; the 8.625% Non-Cumulative Preferred Stock, Series 8; and the Progress Capital Trust II 11.445% Preferred Securities.

This action suggests Bank of America is actively managing its capital structure, potentially aiming to reduce its cost of capital by retiring higher-yielding securities and improving financial flexibility.

More detailed information, including redemption prices, redemption dates, dividend payments, trading symbols, CUSIP numbers, and redemption procedures, is available in the news release dated April 1, 2013, which is attached as Exhibit 99.1 to this filing.