Bank of America Announces Full Redemption of Its Series MM Preferred Stock and Related Depositary Shares

Rhea-AI Summary

Bank of America (NYSE: BAC) has announced the complete redemption of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM and corresponding depositary shares. The redemption will occur on January 28, 2025, at a price of $1,000 per depositary share. Shareholders will receive a separate dividend payment of $21.50 per depositary share for the current semi-annual period from July 28, 2024, to January 28, 2025, payable to holders of record on January 1, 2025. The redemption will be processed through The Depository Trust Company, with Computershare acting as the redemption agent.

Positive

• Clear financial commitment to redeem preferred stock at full value ($1,000 per share)
• Additional dividend payment of $21.50 per share being distributed to shareholders

Negative

• Elimination of a preferred stock series reduces investment options for income-focused investors

News Market Reaction – BAC

-0.47%

-0.47% Session move

In the trading session that priced this news, BAC declined 0.47%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

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CHARLOTTE, N.C., Dec. 26, 2024 /PRNewswire/ -- Bank of America Corporation announced today that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM (CUSIP No. 060505FR0), liquidation preference $25,000 per share (the "Preferred Stock"), and the corresponding depositary shares each representing a 1/25^th interest in a share of the Preferred Stock (CUSIP No. 060505FQ2) (the "Depositary Shares"). 

The Depositary Shares will be redeemed simultaneously with the Preferred Stock on the upcoming dividend payment date on January 28, 2025 (the "Redemption Date"), at a redemption price of $1,000 per depositary share. Declared dividends of $21.50 per depositary share in respect of the outstanding Depositary Shares for the full current semi-annual dividend period from, and including, July 28, 2024 to, but excluding, January 28, 2025 will be paid separately on January 28, 2025, to holders of record on January 1, 2025, in the customary manner.  Accordingly, the redemption price of $1,000 per depositary share does not include any accrued and unpaid dividends. Dividends on the redeemed Depositary Shares will cease to accrue on the Redemption Date.

The Depositary Shares are held through The Depository Trust Company ("DTC") and will be redeemed in accordance with the applicable procedures of DTC.

Payment to DTC for the Depositary Shares will be made by Computershare Inc. and Computershare Trust Company, N.A., collectively, as redemption agent.  The address for the redemption agent is as follows:

Computershare Trust Company, N.A.
Attn: Corporate Actions
150 Royall St.
Canton, MA 02021

This press release does not constitute a notice of redemption under the certificate of designation governing the Preferred Stock or the deposit agreement governing the Depositary Shares.

Bank of America

Bank of America is one of the world's leading 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 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 58 million verified digital users.  Bank of America is a global leader in wealth management, 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 households through a suite of innovative, easy-to-use online products and services.  The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Forward-Looking Statements

Certain information contained in this news release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions difficult to predict or beyond our control.  You should not place undue reliance on any forward-looking statement and should consider the uncertainties and risks discussed under Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, and in any of our subsequent Securities and Exchange Commission filings.  Forward-looking statements speak only as of the date they are made, and we undertake 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.

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

Investors May Contact:

Lee McEntire, Bank of America
Phone:  1.980.388.6780
lee.mcentire@bofa.com

Jonathan G. Blum, Bank of America (Fixed Income)
Phone: 1.212.449.3112
jonathan.blum@bofa.com

Reporters May Contact:

Jocelyn Seidenfeld, Bank of America
Phone: 1.646.743.3356
jocelyn.seidenfeld@bofa.com

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SOURCE Bank of America Corporation

FAQ

When will BAC redeem its Series MM Preferred Stock?

Bank of America will redeem its Series MM Preferred Stock on January 28, 2025.

What is the redemption price for BAC Series MM Preferred Stock depositary shares?

The redemption price is $1,000 per depositary share.

What dividend will BAC Series MM shareholders receive before redemption?

Shareholders will receive a dividend of $21.50 per depositary share for the period from July 28, 2024, to January 28, 2025.

Who is handling the redemption process for BAC Series MM Preferred Stock?

Computershare Inc. and Computershare Trust Company, N.A. are acting as redemption agents for the process.

What is the record date for BAC Series MM Preferred Stock's final dividend?

The record date for the final dividend is January 1, 2025.