Bank of America Corp &
United States Department of the Treasury | Update Date: 01/23/09 |
| Date Announced: 01/22/09 |
| Value (million $USD): 2.00 billion U.S. Dollar |
|
| Status: Pending | |
| TRANSACTION DETAILS |
|---|
| Date Announced | 01/22/09 | | |
| Date Originally Announced | 01/22/09 | | |
| Format | Acq. Part. Int. | Acquisition techniques | Privately Negotiated Purc |
| Attitude | Friendly | Agency | n/a |
| Value | 2.00 billion U.S. Dollar | Advisor Fees | n/a |
| SYNOPSIS |
|---|
| US - State-owned United States Department of the Treasury agreed to acquire warrants convertible into 8.94% stake, or 150.376 mil new common shares in Bank of America Corp, a provider of banking and financial services, for $13.3 per share, or a total value of $2 bil, in a privately negotiated transaction. The transaction was subject to standard closing documents completion, and was part of the Troubled Asset Relief Program, in which the US Treasury announced that it would invest up to $250 bil in senior preferred equity in qualifying US controlled banks, savings associations, and certain bank and savings and loan and loan holding companies. Under the terms of the plan, the senior non-voting, non-convertible preferred shares will pay a 5% dividend for the first five years and a 9% dividend thereafter and the US Treasury will receive the right to purchase common stock equal to 15% of its preferred equity investment in each firm in the form of common share purchase warrants. |
| TARGET |
|---|
| Name | Bank of America Corp (BAC) |
| Industries | Short-term business credit institutions; Misc business credit; Investment advice; Insurance agents, brokers, and service; Offices of bank holding companies |
| City | Charlotte |
| State | NC |
| Nation | United States |
| Incorporated in | DE |
| Public Status | Public |
| Business Description | Bank of America Corp, headquartered in Charlotte, North Carolina, provides banking and certain non-banking financial services and products both domestically and internationally. It has more than 6,000 retail banking offices and more than 18,000 ATMs located in 44 countries. The company operates through four segments, namely Global Consumer and Small Business Banking, Global Business and Financial Services, Global Capital Markets and Investment Banking and Global Wealth and Investment Management. The services it offers include deposit products, lending loans, investment banking, capital markets and leasing and financial advisory services. The company's operations are carried out in the United States, Asia, Europe, Middle East, Africa, Mexico and Latin America. It also serves as a holding company and was founded in 1984. |
| Advisors | NULL |
| Target Sales | 112.57 billion U.S. Dollar |
|
| ACQUIROR |
|---|
| Name | United States Department of the Treasury |
| Industries | n/a |
| City | Washington |
| State | DC |
| Nation | United States |
| Incorporated in | n/a |
| Public Status | Government |
| Business Description | The United States Department of the Treasury, located in Washington, District of Columbia, is a national agency. The agency was established by an Act of Congress in 1789 to manage government revenue. |
| Advisors | NULL |
| Acquiror Sales | n/a |
|
 |
|
