The shares issuable are part of Bank of America’s previously announced plan to exchange common stock for (non-government) perpetual preferred stock. It expects that these actions will help in meeting its $33.9 billion indicated Supervisory Capital Assessment Program (SCAP) buffer set by the US Federal Reserve.
Bank of America will announce this common stock average price on June 23, 2009. One of the conditions is that the common stock average price should be $10 or greater.
The acceptance of validly tendered depositary shares will be based on priority levels assigned to each series of preferred stock. Acceptance of the depositary shares also may be subject to proration, as described in the Offer to Exchange.
The exchange offer is subject to a number of conditions which must be satisfied or waived by Bank of America on or prior to the expiration date.
