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Bank of America Corp. | Trust Preferred Securities (MER.PRM)

Prospectus excerpt:  The Trust Preferred Securities, each with a $25 liquidation amount, are referred to in this prospectus supplement as the “capital securities.” Each capital security represents an undivided beneficial interest in the assets of Merrill Lynch Capital Trust II, or the “trust,” which is a Delaware statutory trust. Merrill Lynch & Co., Inc. will own all of the common securities of the trust.

The only assets of the trust will be Income Capital Obligation Notes® initially due June 15, 2062, issued by Merrill Lynch & Co., Inc., which we refer to in this prospectus supplement as the “ICONs.” The trust will pay distributions on the capital securities only from the proceeds, if any, of interest payments on the ICONs. The ICONs are junior subordinated debt instruments and will bear interest from the date they are issued at the annual rate of 6.45% of their principal amount, payable quarterly in arrears on March 15, June 15, September 15, and December 15 of each year, beginning June 15, 2007. If we elect to extend the maturity date of the ICONs as described in this prospectus supplement, from and including June 15, 2062, the ICONs will bear interest at the Three-Month LIBOR Rate plus 107 basis points (1.07%) payable on March 15, June 15, September 15, and December 15 of each year, beginning September 15, 2062.

We may elect to defer interest payments on the ICONs as described in this prospectus supplement for up to ten consecutive years. If we do not pay interest on the ICONs, the trust will not make the corresponding distributions on the capital securities. We will guarantee payment of distributions on the capital securities only to the extent we make corresponding payments to the trust on the ICONs.

The ICONs will mature on June 15, 2062 unless we elect to extend the maturity date of the ICONs on any or all of the five dates specified in this prospectus supplement. Each such election would extend the maturity date of the ICONs an additional five years. If we make this election on all of these dates, the ICONs will mature on June 15, 2087, and if we make this election on only one of these dates, the ICONs will mature on June 15, 2067. We may redeem the ICONs on or after June 15, 2012 and prior to that date upon the occurrence of the events specified in this prospectus supplement at 100% of their principal amount plus accrued and unpaid interest. In addition, we may redeem the ICONs prior to June 15, 2012 even if none of those specified events occur at the redemption price described in this prospectus supplement. To the extent we redeem the ICONs, the trust must redeem a corresponding amount of the capital securities and common securities.

Full Prospectus PDF », BAC Page »

Alternate symbology:MER-M, MER-PM, MERprM
Call Date:6/15/2012 (Now Trading Post Call Date)
Maturity Date:6/15/2067
Shares Offered:36,000,000
Liquidation Preference:$25
Recent Market Price:$25.71
Premium to Liquidation Preference:
(More Preferreds Trading at a Premium »)
$0.71 (2.84%)
Annualized Dividend:1.6125
Recent Ex-Date:12/10/2015
Current Yield:6.27%
Original Coupon:6.45% until 9/14/2062, then Three-Month LIBOR Rate plus 107 basis points from 9/15/2062 through maturity
Pay Period:Quarterly
Pay Dates:15-Mar, 15-Jun, 15-Sep, 15-Dec
Bank of America is a bank and financial holding company. Through its banking and various nonbanking subsidiaries throughout the U.S. and in international markets, Co. serves individual consumers, small- and middle-market businesses, institutional investors, corporations and governments with a range of banking, investing, asset management and other financial and risk management products and services. Co. provides its services and products through five segments: Consumer & Business Banking, Consumer Real Estate Services, Global Wealth & Investment Management, Global Banking and Global Markets. As of Dec 31 2014, Co. had total assets of $2.10 trillion and total deposits of $1.12 trillion.


Open the BAC Information Page »
Name:  Bank of America Corp.
Sector:  Banking & Savings
Number of ETFs Holding BAC:  71 (see which ones)
Total Market Value Held by ETFs:  $5,294,487,056
Total Market Capitalization:  $181,906,000,000
% of Market Cap. Held by ETFs:  2.91%

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