Bank of America 2008 Annual Report Download - page 165

Preferred Stock
The following table presents a summary of Preferred Stock issued by the Corporation.
Preferred Stock Summary
(Dollars in
millions, except
as noted)
Description
Initial
Issuance
Date
Total
Shares
Issued
Liquidation
Preference
per Share
(in dollars)
Carrying
Value
(2)
Per Annum
Dividend Rate Redemption Period
Series
(1)
Series B
(3)
7%
Cumulative
Redeemable
January
1998 7,642 $ 100 $ 1 7.00% n/a
Series D
(4, 5)
6.204% Non-
Cumulative
September
2006 33,000 25,000 825 6.204%
On or after
September 14, 2011
Series E
(4, 5)
Floating Rate
Non-
Cumulative
November
2006 81,000 25,000 2,025
Annual rate equal to the
greater of (a) 3-mo.
LIBOR + 35 bps and (b)
4.00%
On or after
November 15, 2011
Series H
(4, 5)
8.20% Non-
Cumulative
May
2008 117,000 25,000 2,925 8.20%
On or after
May 1, 2013
Series I
(4, 5)
6.625% Non-
Cumulative
September
2007 22,000 25,000 550 6.625%
On or after
October 1, 2017
Series J
(4, 5)
7.25% Non-
Cumulative
November
2007 41,400 25,000 1,035 7.25%
On or after
November 1, 2012
Series K
(5, 6)
Fixed-to-
Floating Rate
Non-
Cumulative
January
2008 240,000 25,000 6,000
8.00% through 1/29/18;
3-mo. LIBOR + 363 bps
thereafter
On or after
January 30, 2018
Series L
(7)
7.25% Non-
Cumulative
Perpetual
Convertible
January
2008 6,900,000 1,000 6,900 7.25% n/a
Series M
(5, 6)
Fixed-to-
Floating Rate
Non-
Cumulative
April
2008 160,000 25,000 4,000
8.125% through
5/14/18; 3-mo. LIBOR +
364 bps thereafter
On or after
May 15, 2018
Series N
(8)
Fixed Rate
Cumulative
Perpetual
October
2008 600,000 25,000 13,550
5.00% through
11/14/13; 9.00%
thereafter
On or after
November 15, 2011
Total 8,202,042 $37,811
(1) Series of preferred stock have a par value of $0.01 per share.
(2) Amounts shown before third party issuance costs totaling $110 million.
(3) Series B Preferred Stock does not have early redemption/call rights.
(4) Ownership is held in the form of depository shares each representing a 1/1000th interest in a share of preferred stock paying a quarterly cash dividend.
(5) The Corporation may redeem series of preferred stock on or after the redemption date, in whole or in part, at its option, at the liquidation preference plus declared and unpaid dividends.
(6) Ownership is held in the form of depository shares each representing a 1/25th interest in a share of preferred stock, paying a semi-annual cash dividend, if and when declared, until the redemption date then adjusts to
a quarterly cash dividend, if and when declared, thereafter.
(7) Series L Preferred Stock does not have early redemption/call rights. Each share of the Series L Preferred Stock may be converted at any time, at the option of the holder, into 20 shares of the Corporation’s common
stock plus cash in lieu of fractional shares. On or after January 30, 2013, the Corporation may cause some or all of the Series L Preferred Stock, at its option, at any time or from time to time, to be converted into
shares of common stock at the then-applicable conversion rate if, for 20 trading days during any period of 30 consecutive trading days, the closing price of common stock exceeds 130 percent of the then-applicable
conversion price of the Series L Preferred Stock. If the Corporation exercises its right to cause the automatic conversion of Series L Preferred Stock on January 30, 2013, it will still pay any accrued dividends payable
on January 30, 2013 to the applicable holders of record.
(8) Series N Preferred Stock initially pays quarterly cash dividends. Series N Preferred Stock may be redeemed earlier with net proceeds from qualified equity offerings, which is defined generally as a sale or issuance of
common or perpetual preferred stock to third parties that qualifies as Tier 1 Capital.
n/a = not applicable
Bank of America 2008 163