Summary
Bank of America Corporation (BAC) has filed an 8-K report on September 17, 2018, detailing the upcoming liquidation of two trusts: Merrill Lynch Capital Trust I and Countrywide Capital III. This event, scheduled for October 18, 2018 (the "Liquidation Date"), will result in the distribution of junior subordinated notes to the holders of the respective trust preferred securities and trust common securities. Specifically, holders of Merrill Lynch Capital Trust I's trust preferred securities will receive Bank of America's Income Capital Obligations NotesSM due 2066 (Merrill Notes), and holders of Countrywide Capital III's subordinated capital income securities will receive Bank of America's 8.05% Junior Subordinated Debentures due 2027 (Countrywide Notes). This exchange will occur automatically through The Depository Trust Company, requiring no action from security holders. The company intends to seek a listing for the Merrill Notes on the NYSE under the symbol MER PrK.
Key Highlights
- 1Upcoming liquidation of Merrill Lynch Capital Trust I and Countrywide Capital III on October 18, 2018.
- 2Trust preferred security holders will receive direct subordinated notes from Bank of America.
- 3Holders of Merrill Trust Preferred Securities will receive Bank of America's Income Capital Obligations NotesSM due 2066.
- 4Holders of Countrywide Capital Securities will receive Bank of America's 8.05% Junior Subordinated Debentures due 2027.
- 5The exchange of trust securities for notes is automatic and requires no action from security holders.
- 6Bank of America intends to list the Merrill Notes on the NYSE under the symbol MER PrK.
- 7Interest payments on the distributed notes will be made on December 17, 2018, reflecting accrued interest as if the liquidation had not occurred.