Terms

Series

Series L

Liquidation Preference

$1,000.00

Coupon Rate

7.25%

Rate Type

Fixed

Annual Dividend

$72.50

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

Yes

Callable

No

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness Of Bank Of America Corporation, All Liabilities And Obligations Of Subsidiaries (Structural Subordination), Any Future Preferred Stock Expressly Designated As Senior; Pari Passu With: Series B Preferred Stock (7% Cumulative Redeemable), Series D Preferred Stock (6.204% Non-Cumulative), Series E Preferred Stock (Floating Rate Non-Cumulative), Series F Preferred Stock (Floating Rate Non-Cumulative, If Issued), Series G Preferred Stock (Adjustable Rate Non-Cumulative, If Issued), Series I Preferred Stock (6.625% Non-Cumulative), Series J Preferred Stock (7.25% Non-Cumulative), Series K Preferred Stock (Fixed-To-Floating Rate Non-Cumulative, Upon Issuance); Senior To: Common Stock, Any Other Class Or Series Of Capital Stock Expressly Made Junior To Preferred Stock

Regulatory (Basel III) Call

No

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Shares Offered

6,000,000

Prospectus Summary

Bank of America Corporation's Series L is a 7.25% Non-Cumulative Perpetual Convertible Preferred Stock with a $1,000 liquidation preference per share, offered at par in January 2008. Each share is convertible at any time at the holder's option into 20 shares of BAC common stock (initial conversion price of $50.00), and the issuer may force conversion on or after January 30, 2013 if the stock trades above 130% of the conversion price for 20 of 30 consecutive trading days. Critically, dividends are non-cumulative: if the board does not declare a dividend for any quarterly period, that payment is permanently lost and does not accrue for future payment. As a holding company issuance, the Series L Preferred Stock is structurally subordinated to all liabilities of Bank of America's operating subsidiaries (including Bank of America, N.A.), meaning creditors of the subsidiaries have priority over preferred holders on subsidiary assets. Within the BAC holding company capital stack, Series L ranks senior to common stock and pari passu with Series B, D, E, F, G, I, J, and K preferred. It is junior to all existing and future senior debt of the holding company. There is no regulatory capital (Tier 1) redemption provision — the stock is explicitly not redeemable at any time, which eliminates forced redemption risk but also means investors have no call floor protection. At the $1,000 offering price, the effective yield is 7.25% ($72.50 per share annually, paid in four quarterly installments of $18.125 on January 30, April 30, July 30, and October 30). Record dates are set as the first day of the month in which each payment date falls. Dividends should qualify for the preferential 15%/20% QDI rate for individual holders and the dividends-received deduction for corporate holders, provided BAC has sufficient current or accumulated earnings and profits — a condition the company notes may not always be met. The dividend stopper prevents BAC from paying common stock dividends or repurchasing junior stock in any quarter in which full Series L dividends have not been declared and set aside, providing indirect income protection.

Summarized from the SEC prospectus filing.

Distribution History

Conversion Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Bank of America has not paid full dividends on the Series L Preferred Stock for the current dividend period, it is blocked from paying dividends on or repurchasing its common stock or any other junior stock, and from repurchasing parity preferred stock (except in employee/director plan transactions); parity preferred dividends must also be paid in full or allocated pro rata.

Other Preferreds from Bank of America Corp

Div Score Breakdown

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