This Day On The Street
Continue to site
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

Bank of America's Offering Well-Received

CHARLOTTE, N.C. ( TheStreet) -- 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 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.56 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs