Bloomberg News

Bank of America Receives Consent to Amend Some Trust Preferreds

November 25, 2011

Nov. 25 (Bloomberg) -- Bank of America Corp., the lender that’s planning to cut debt and bolster its balance sheet, said it received consent from investors to amend the terms of certain trust preferred securities.

Holders of five separate trust preferred securities, or TruPS, agreed to the new terms, the Charlotte, North Carolina- based bank said today in a statement. The company will pay $2.50 on Nov. 28 for every $1,000 in liquidation, it said. The five TruPS have a combined liquidation amount outstanding of $1.68 billion.

Bank of America, the second-biggest U.S. lender behind JPMorgan Chase & Co., didn’t receive adequate consent to amend the terms of three other TruPS, according to the statement.

--Editors: David Scheer, Dan Kraut

To contact the reporters on this story: Donal Griffin in New York at Dgriffin10@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.


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