CHARLOTTE, N.C. (
Bank of America
(BAC - Get Report)
saw strong demand for its TARP-busting secondary offering late Thursday, selling half a billion dollars more in securities than it originally envisioned at a discount of less than 5% to its common stock.
Shares of the nation's largest bank were holding up well following news overnight of the details of the offering, which is pegged to generate gross proceeds of $19.3 billion through the sale of "common equivalent securities" -- consisting of depositary shares and warrants to purchase common stock -- that priced at the equivalent of $15 per common share.
Bank of America shares finished Thursday at $15.76, up a little more than a dime. Trading in the wake of the company's
of its TARP repayment plans late Wednesday was volatile. Nearly 650 million shares changed hands on Thursday, well beyond the issue's trailing three-month daily average of 185.2 million. The stock rose as high as $16.74 during the session, a gain of 7%, before selling off. Shares were recently quoted at $15.75 in premarket trades, a penny lower.
When Bank of America announced its TARP repayment plan, it said it was targeting a capital raise of $18.8 billion, so the offering exceeded that goal by a fair amount. Next on the agenda will be the actual payback of TARP, which a Bank of America spokesman told
on Thursday could take place in a
matter of days
. The government will still have some exposure to Bank of America through warrants, but the company doesn't plan to
deal with those