Bank of America Announces Successful Remarketing

Published on Monday, 06 February 2012 16:13 Written by TradersHuddle Staff

CHARLOTTE, N.C.-( Business Wire )-

Bank of America Corporation announced today that it has successfully remarketed the remaining outstanding $140,922,000 in aggregate principal amount of its Remarketable Floating Rate Junior Subordinated Notes due 2043 (the “Remarketable Floating Rate Notes”) and the remaining outstanding $492,537,000 aggregate principal amount of its Remarketable Fixed Rate Junior Subordinated Notes due 2043 (the “Remarketable Fixed Rate Notes” and together with the Remarketable Floating Rate Notes, the “Remarketable Notes”).

The company repurchased all of the Remarketable Notes in the remarketings and expects to retire all of the Remarketable Notes.

Merrill Lynch, Pierce, Fenner & Smith Incorporated acted as remarketing agent in connection with the remarketings.

The company originally issued $700,100,000 in aggregate principal amount of its Remarketable Floating Rate Junior Subordinated Notes due 2043 to BAC Capital Trust XIII, a Delaware statutory trust (“Trust XIII”), in connection with the February 2007 offering of Trust XIII’s Floating Rate Preferred Hybrid Income Term Securities, and $850,100,000 in aggregate principal amount of its Remarketable Fixed Rate Junior Subordinated Notes due 2043 to BAC Capital Trust XIV, a Delaware statutory trust (“Trust XIV”), in connection with the February 2007 offering of Trust XIV’s Fixed to Floating Rate Preferred Hybrid Income Term Securities.

In connection with the remarketings of the Remarketable Notes, the stated maturity was shortened to March 15, 2017, the interest rate on the Remarketable Floating Rate Notes was reset to 5.822199 percent per annum and the interest rate on the Remarketable Fixed Rate Notes was reset to 6.404338 percent per annum. The remarketings will settle on February 15, 2012.

The net proceeds from the remarketing of the Remarketable Floating Rate Notes will be used to satisfy the obligations of Trust XIII under a stock purchase contract agreement, pursuant to which Trust XIII is obligated to purchase, and the company is obligated to sell, on March 15, 2012, approximately 1,410 shares of the company’s Floating Rate Non-Cumulative Preferred Stock, Series F, $100,000 liquidation preference per share, and the net proceeds from the remarketing of the Remarketable Fixed Rate Notes will be used to satisfy the obligations of Trust XIV under a stock purchase contract agreement, pursuant to which Trust XIV is obligated to purchase, and the company is obligated to sell, on March 15, 2012, approximately 4,926 shares of the company’s Adjustable Rate Non-Cumulative Preferred Stock, Series G, $100,000 liquidation preference per share.

This press release is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any security.

Bank of America

Bank of America is one of the world's largest financial institutions, serving individual consumers, small- and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 57 million consumer and small business relationships with approximately 5,700 retail banking offices and approximately 17,750 ATMs and award-winning online banking with 30 million active users. Bank of America is among the world's leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business owners through a suite of innovative, easy-to-use online products and services.

The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is a component of the Dow Jones Industrial Average and is listed on the New York Stock Exchange.

Forward-Looking Statements

Certain statements in this news release represent the current expectations, plans or forecasts of Bank of America and are forward-looking. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. These statements often use words like “expects,” “anticipates,” “believes,” “estimates,” “targets,” “intends,” “plans,” “predict,” “goal” and other similar expressions or future or conditional verbs such as “will,” “may,” “might,” “should,” “would” and “could.” The forward-looking statements made in this press release include, without limitation, statements concerning the expected retirement of the Remarketable Notes and the use of net proceeds from the remarketing. Forward-looking statements speak only as of the date they are made, and Bank of America undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward-looking statement was made.

These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Bank of America’s control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. You should not place undue reliance on any forward-looking statement and should consider all of the following uncertainties and risks, as well as those more fully discussed under Item 1A. “Risk Factors” of Bank of America’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, Item 1A. “Risk Factors” of Bank of America’s Annual Report on Form 10-K for the year ended December 31, 2010 and in any of Bank of America’s other subsequent Securities and Exchange Commission filings: the timing of the expected retirement of the Remarketable Notes and the use of net proceeds from the remarketing.

For more Bank of America news, visit the Bank of America newsroom.

www.bankofamerica.com

Investors May Contact:Patricia Noneman, Bank of America, 1.980.388.3591Jonathan G. Blum, Bank of America, 1.212.449.3112Reporters May Contact:Jerry Dubrowski, Bank of America, This e-mail address is being protected from spambots. You need JavaScript enabled to view it.