Bank of America to redeem $1.97 billion of trust preferred securities

By Marisa Wong

Morgantown, W.Va., July 14 – Bank of America Corp. plans to redeem $1.97 billion of trust preferred securities, according to a press release.

The following securities will be redeemed in full at par plus accrued distributions on Aug. 15:

• $523,775,000 outstanding 6% capital securities of BAC Capital Trust VIII. Accrued distributions are $0.3333333 per security, each with a liquidation preference of $25;

• $500 million outstanding 6.75% trust preferred securities of Countrywide Capital IV. Accrued distributions are $0.2062500 per security, each with a liquidation preference of $25; and

• $950 million outstanding trust preferred securities of Merrill Lynch Capital Trust II. Accrued distributions are $0.2687500 per security, each with a liquidation preference of $25.

Deutsche Bank Trust Co. Americas is the paying agent for the 6.75% preferreds. Bank of New York Mellon is the paying agent for the other two series of preferreds.

The redemptions are being made as part of Bank of America’s capital plan, according to the release.

The banking and financial services corporation is based in Charlotte, N.C.

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