This Day On The Street
Continue to site
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

Bank of America to Sell Warrants

CHARLOTTE, N.C. ( TheStreet) -- Bank of America (BAC - Get Report) said in a regulatory filing late Monday that the Treasury Department will auction 272 million warrants associated with the government's $45 billion bailout of the bank in 2008.

Bank of America agreed to issue the warrants to the Treasury in return for a $25 billion preferred equity investment through the Troubled Asset Relief Program in late 2008 and another $20 billion preferred equity investment made in early 2009, made to keep the company from backing out of a deal to acquire tottering Merrill Lynch. While Bank of America has repaid those investments to Treasury, it did not reach an agreement on the price of the warrants and agreed to the auction.

Two sets of warrants, one for 150.4 million securities that will carry a minimum bid of $7 each and another 121.8 million securities with a minimum bid of $1.50 each, will be issued in an auction run by Deutsche Bank Securities on Wednesday. The auction begins at 8 a.m. and closes at 6:30 p.m.
 Donald Kohn
Donald Kohn, vice chairman of the Federal Reserve.

Bank of America shareholders on Feb. 23 voted to authorize the company to raise its outstanding stock ceiling to 11.3 billion shares. The company will have 10.03 billion outstanding shares after the sale of the warrants, according to the regulatory filing.
This article was written by a staff member of TheStreet.com.

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BAC $17.84 0.99%
AAPL $123.55 0.64%
FB $94.99 0.87%
GOOG $627.79 0.08%
TSLA $262.12 3.60%

Markets

Chart of I:DJI
DOW 17,575.90 +135.31 0.78%
S&P 500 2,084.72 +17.08 0.83%
NASDAQ 5,066.9450 +27.1690 0.54%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs