Bank of America Announces Full Redemption of its Series JJ Preferred Stock and Series U Preferred Stock and Related Depositary Shares

Rhea-AI Summary

Bank of America (NYSE: BAC) announced the full redemption of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series JJ, and Series U, along with their corresponding depositary shares. The Series JJ Preferred Stock and corresponding depositary shares will be redeemed on June 20, 2024, at $1,000 per depositary share. Declared dividends of $25.625 per depositary share will be paid separately for the period ending June 20, 2024.

The Series U Preferred Stock and corresponding depositary shares will be redeemed on June 17, 2024, at $1,000 per depositary share, inclusive of accrued dividends up to the redemption date. Regular dividends for the Series U Depositary Shares will be paid separately on June 3, 2024. Payment for these redemptions will be handled by Computershare Inc. and Computershare Trust Company, N.A., following The Depository Trust Company procedures.

Positive

• Full redemption of Series JJ and Series U Preferred Stock at $1,000 per depositary share provides clarity and financial stability.
• Declared dividends for Series JJ of $25.625 per depositary share to be paid separately ensures shareholder value.
• Payment managed by Computershare Inc. and Computershare Trust Company, N.A. promises a secure transaction process.

Negative

• Redemption of preferred stocks may reduce investor options for those holding Series JJ and Series U Preferred Stock.
• Cessation of dividends on redeemed Series JJ and Series U Depositary Shares after the redemption date may impact income-focused investors.

CHARLOTTE, N.C., May 16, 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 JJ (CUSIP No. 060505FN9), liquidation preference $25,000 per share (the "Series JJ Preferred Stock"), and the corresponding depositary shares each representing a 1/25^th interest in a share of the Series JJ Preferred Stock (CUSIP No. 060505FP4) (the "Series JJ Depositary Shares").  Bank of America also announced today that it will redeem all outstanding shares of its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series U (CUSIP No. 060505EE0), liquidation preference $25,000 per share (the "Series U Preferred Stock"), and the corresponding Depositary Shares, each representing a 1/25th interest in a share of Series U Preferred Stock (CUSIP No. 060505ED2) (the "Series U Depositary Shares").

The Series JJ Depositary Shares will be redeemed simultaneously with the Series JJ Preferred Stock on the upcoming dividend payment date on June 20, 2024 (the "Series JJ Redemption Date"), at a redemption price of $1,000 per depositary share. Declared dividends of $25.625 per depositary share in respect of the outstanding Series JJ Depositary Shares for the full current semi-annual dividend period from, and including, December 20, 2023 to, but excluding, June 20, 2024 will be paid separately on June 20, 2024, to holders of record on June 1, 2024, 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 Series JJ Depositary Shares will cease to accrue on the Series JJ Redemption Date.

The Series U Depositary Shares will be redeemed on June 17, 2024 (the "Series U Redemption Date"), simultaneously with the Series U Preferred Stock, at a redemption price of $1,000 per depositary share, plus dividends that have accrued but have not been paid in respect of such depositary shares for the dividend period in which the Series U Redemption Date occurs to, but excluding, the Series U Redemption Date (the "Series U Redemption Price").  Regular dividends in respect of the Series U Depositary Shares for the full current quarterly dividend period beginning on March 1, 2024 to, but excluding, June 3, 2024 have been declared and will be paid separately on June 3, 2024, to holders of record on May 15, 2024, in the customary manner.  As noted above, accrued but unpaid dividends in respect of the Series U Depositary Shares from, and including, June 3, 2024 to, but excluding, the Series U Redemption Date, will be included in the Series U Redemption Price. Dividends in respect of the redeemed Series U Depositary Shares will cease to accrue on the Series U Redemption Date.

The Series JJ Depositary Shares and Series U 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 Series JJ Depositary Shares and the Series U 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 Series JJ Preferred Stock or the deposit agreement governing the Series JJ Depositary Shares or under the certificate of designation governing the Series U Preferred Stock or the deposit agreement governing the Series UU 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 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 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:

Bill Halldin, Bank of America
Phone: 1.916.724.0093
william.halldin@bofa.com

 

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SOURCE Bank of America Corporation

FAQ

What is the redemption price for Bank of America's Series JJ Preferred Stock depositary shares?

The redemption price for Bank of America's Series JJ Preferred Stock depositary shares is $1,000 per share.

When will the Series JJ Preferred Stock be redeemed?

The Series JJ Preferred Stock will be redeemed on June 20, 2024.

What is the redemption date for Bank of America's Series U Preferred Stock?

The redemption date for Bank of America's Series U Preferred Stock is June 17, 2024.

Will dividends be paid for the Series U Preferred Stock before redemption?

Yes, regular dividends for Series U Preferred Stock will be paid separately on June 3, 2024.

How will the redemption of Series JJ and Series U Depositary Shares be processed?

The redemption will be processed through The Depository Trust Company and managed by Computershare Inc. and Computershare Trust Company, N.A.