Terms

Series

Floating Rate Non-Cumulative Preferred Stock, Series E

Liquidation Preference

$25.00

Coupon Rate

4%

Rate Type

Floating

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

November 15, 2011

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Indebtedness And Non-Equity Claims Of Bank Of America Corporation, Future Preferred Stock Expressly Senior To The Preferred Stock, All Liabilities Of Subsidiaries (Structural Subordination); Pari Passu With: Series B Preferred Stock (7% Cumulative Redeemable), Series D Preferred Stock (6.204% Non-Cumulative); Senior To: Common Stock, Any Capital Stock Expressly Junior To The Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

74,000,000

Prospectus Summary

Bank of America Corporation's Floating Rate Non-Cumulative Preferred Stock, Series E is offered as 74,000,000 depositary shares, each representing a 1/1,000th interest in an underlying preferred share with a $25,000 liquidation preference (equivalent to $25 per depositary share) and a $0.01 par value. Dividends accrue at the greater of three-month LIBOR plus 35 basis points or a 4.00% floor, paid quarterly in arrears on February 15, May 15, August 15, and November 15, beginning February 15, 2007. The security is non-cumulative, meaning if the board does not declare a dividend for any period, that dividend is permanently forfeited with no obligation to make it up. The first call date is November 15, 2011, at $25 per depositary share. The Series E Preferred ranks pari passu with Bank of America's Series B (7% Cumulative) and Series D (6.204% Non-Cumulative) preferred stock, and senior to common stock. It is structurally subordinated to all debt obligations of Bank of America Corporation and, critically, to all liabilities of its bank and non-bank subsidiaries — holders' claims sit at the holding company level and cannot reach subsidiary assets until subsidiary creditors are satisfied. Any future preferred stock expressly designated senior to Series E could restrict or block dividend payments entirely. There is no explicit regulatory capital (Tier 1 loss) call provision, but any redemption requires prior Federal Reserve Board approval, which cannot be guaranteed. At the 4.00% floor and $25 per depositary share liquidation preference, the minimum effective yield at par is 4.00% annually (approximately $0.25 per depositary share per quarter at the floor). Dividends are expected to qualify as 'qualified dividend income' (QDI) for non-corporate U.S. holders taxed at the preferential 15% rate, and for the 70% dividends-received deduction (DRD) for corporate holders, provided Bank of America has sufficient current or accumulated earnings and profits — a condition that could fail in adverse years. Payment record dates are set by the board not more than 30 days before each quarterly payment date. The dividend stopper prevents any cash dividends on common stock or junior stock if current-period Series E dividends have not been fully declared and paid or set aside, though because dividends are non-cumulative, a missed period creates no ongoing legal obligation.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If full dividends on the Series E Preferred Stock for the current dividend period have not been declared and paid (or set aside), Bank of America cannot pay dividends on common stock or any junior stock, nor repurchase junior or parity stock for cash consideration; any partial payment to parity stock must be made pro rata with the Series E Preferred Stock.

Other Preferreds from Bank of America Corp

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 64 (Strong)