Bank of America Corporation (the "Corporation") filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission ("SEC") on December 29, 2015, providing notice of the redemption of all trust preferred securities of Merrill Lynch Preferred Capital Trust III, Merrill Lynch Preferred Capital Trust IV and Merrill Lynch Preferred Capital Trust V (the "Trust Preferred Securities").
Beginning in January of 2016 these securities, unlike the Corporation's other outstanding series of trust preferred securities, will completely phase-out from regulatory capital.
As a result of the Bank of America Merrill Lynch merger in 2009, the Corporation recorded a discount to par value as purchase accounting adjustments associated with these securities. The Corporation will record a non-cash reduction to net interest income and to pretax income of approximately $600 million in the fourth quarter of 2015 for the remaining discount to par value. The Corporation expects to realize cash savings from lower funding costs as a result of the redemption.
The redemption date for all the Trust Preferred Securities is January 29, 2016, and the redemption price is 100 percent of the liquidation amount per Trust Preferred Security, plus accumulated and unpaid distributions on the Trust Preferred Securities through the redemption date.
Bank of America Corporation makes available all of its SEC filings on its website: http://investor.bankofamerica.com/phoenix.zhtml?c=71595&p=irol-irhome.
The SEC maintains a website that contains reports, proxy statements and other information regarding issuers that file electronically with the SEC. These materials may be obtained electronically by accessing the SEC's website at http://www.sec.gov. A copy of the document will also be available on the National Storage Mechanism's website at: http://www.morningstar.co.uk/uk/NSM.
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Contacts:
Bank of America
Michael Pressman, Assistant General Counsel
+1 980-386-5083
