BoA repays TARP
(11 December 2009 – USA) Bank of America has sent the U.S. treasury US$45 billion (A$49 billion) to repay the U.S. taxpayers’ entire investment in the company as part of the Troubled Asset Relief Program (TARP).
The repayment followed the successful completion of a securities offering, selling US$1.2 billion common equivalent securities and generating gross proceeds of approximately US$19.29 billion.
The offering was priced at US$15.00 per common equivalent security and its proceeds, along with existing corporate funds, were used to repurchase all the preferred stock issued to the U.S. Department of the Treasury. The company also paid the government US$190 million in accrued dividends on the repurchased preferred securities.
Kenneth D. Lewis, chief executive officer and president, Bank of America, said that the bank owes taxpayers thanks for making these funds available to the nation's financial system and to the BoA during a very difficult time.
Now that the bank has cleared this significant hurdle, which demonstrates the strength of the company, BoA looks forward to continuing to play a key role in the economic recovery and helping to meet the changing needs of the bank’s customers and clients, Mr Lewis added.
The offering was priced at US$15.00 per common equivalent security and its proceeds, along with existing corporate funds, were used to repurchase all the preferred stock issued to the U.S. Department of the Treasury. The company also paid the government US$190 million in accrued dividends on the repurchased preferred securities.
Kenneth D. Lewis, chief executive officer and president, Bank of America, said that the bank owes taxpayers thanks for making these funds available to the nation's financial system and to the BoA during a very difficult time.
Now that the bank has cleared this significant hurdle, which demonstrates the strength of the company, BoA looks forward to continuing to play a key role in the economic recovery and helping to meet the changing needs of the bank’s customers and clients, Mr Lewis added.
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