This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Bank of America's Offering Well-Received

Stocks in this article: BAC

CHARLOTTE, N.C. ( TheStreet) -- Bank of America (BAC) 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 surprise announcement 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 TheStreet 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 just yet.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs