Bank of America Corporation announced the common stock average price of USD12.7048 for its offers to exchange up to 200 million shares of common stock for outstanding depositary shares for each series of preferred stock. The exchange offer consists of separate offers for depositary shares representing each series of the preferred stock.
The common stock average price represents the simple arithmetic average of the daily per share volume-weighted average price of Bank of America common stock for each of the five consecutive trading days ending on and including 22 June 2009 (the second business day prior to the scheduled expiration date of the exchange offer). The number of shares of common stock issuable for each exchanged depositary share is listed below and was determined by dividing the applicable consideration per depositary share by USD12.7048, the common stock average price, and rounded to four decimal places.
The exchange offer will expire at midnight, New York City time, on 24 June 2009, unless extended or earlier terminated by Bank of America. Holders of the depositary shares eligible for exchange will be able to tender their depositary shares, or withdraw their previously tendered depositary shares, at any time prior to the expiration of the exchange offer.
The exchange offer would increase Bank of America’s Tier 1 common capital by an amount equal to the aggregate liquidation preference of the depositary shares exchanged. The shares issuable in the exchange offer are part of Bank of America’s previously-announced plan to exchange common stock for non-government perpetual preferred stock. Bank of America believes that these actions will assist in meeting the USD33.9 billion indicated Supervisory Capital Assessment Program (SCAP) buffer set by the Federal Reserve.
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