Bank of America’s ($BAC) plan for the 34 billion

  • According to CFO Joe Price, the company will sell $1.25 billion in new common shares.
  • Prices will be sold through “ATM program,” where securities are sold through normal stock trading. (NICE!!)
  • Overtime, BAC plans to raise $17 billion in common through the conversion of some preferred shares within the $1.25 billion of new issuance.

"We would access the market over time, with the goal of optimizing pricing and timing and price execution," said Joe Price

  • BAC also plans on generating $10 billion in gains from the sale of First Republic, Columbia Management, and through a joint venture.
  • Price believes that the remaining $7 billion can be satisfied by their actual financial performance over the next six months.
  • BAC currently has $32 billion in cash and liquid assets according to their balance sheet.
  •  

Source: MarketWatch & Reuters

0 comments:

Post a Comment