Bank of America issues call to redeem $3.5 billion trust preferreds on June 6

By Susanna Moon

Chicago, May 2 – Bank of America Corp. said it has issued redemption notices for several series of trust preferred securities on June 6.

The trust preferreds will be redeemed on June 6 at the liquidation amount or at a make-whole redemption price plus accrued distributions to but excluding the redemption date.

The trust preferreds are being redeemed, along with the common securities issued by the applicable trust and held by the bank or its affiliates, as a result of the concurrent redemption by the bank of its junior subordinated notes held by each trust, which underlie the respective series of trust preferreds, according to a company announcement.

The securities covered by the redemptions are as follows:

• BAC Capital Trust VI’s $26,505,000 5.625% capital securities at a make-whole redemption price and accrued interest of $13.75 per $1,000 liquidation amount;

• BAC Capital Trust VII’s £4.1 million 5.25% capital securities at a make-whole redemption price and accrued interest of £834.2465753 per £50,000 liquidation amount;

• BAC Capital Trust XI’s $657,756,000 6.625% capital securities at a make-whole redemption price and accrued interest of $2.39 per $1,000 liquidation amount;

• NB Capital Trust III’s $131,498,000 floating-rate capital securities at a price of 100% and accrued interest of $4.105 per $1,000 liquidation amount;

• Fleet Capital Trust V’s $79.32 million floating-rate capital securities at a price of 100% and accrued interest of $6.97 per $1,000 liquidation amount;

• BankBoston Capital Trust III’s $53.14 million floating-rate capital securities at a price of 100% and accrued interest of $6.627 per $1,000 liquidation amount;

• BankBoston Capital Trust IV’s $102,379,000 floating-rate capital securities at a price of 100% and accrued interest of $6.618 per $1,000 liquidation amount;

• Merrill Lynch Capital Trust III’s $750 million trust preferred securities at a price of 100% and accrued interest of $0.41 per $25.00 liquidation amount;

• MBNA Capital B’s $70,471,000 floating-rate capital securities, series B, at a price of 100% and accrued interest of $3.158 per $1,000 liquidation amount;

• BankAmerica Capital III’s $102,881,000 floating-rate capital securities, series 3, at a price of 100% and accrued interest of $4.13 per $1,000 liquidation amount; and

• Countrywide Capital V’s $1,495,000,000 7% capital securities at a price of 100% and accrued interest of $0.17 per $25.00 liquidation amount.

The redemptions are being made under Bank of America’s capital plan, the release noted. The bank said that it expects to record a charge to other income and pretax income estimated to be about $800 million.

Bank of America is a financial services company based in Charlotte, N.C.

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