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Bank of America Prices their Common Equivalent Securities

|Includes: Bank of America Corporation (BAC)

As a follow up to my earlier post (found here:seekingalpha.com/instablog/153397-michael-terry/38256-bank-of-america-common-equivalant-units-mean-forward-equity) Bank of America has priced its common equivalent securities.  From the press release:

Bank of America said it has priced its stock offering which it plans to use to pay back the government's bailout money. 
The offering of "common equivalent securities" is priced at $15 a share, almost 5% below where the company's shares closed on the NYSE Thursday. Shares of the bank ended at $15.76, and then fell 1.65% to $15.50 in after-hours trading. The offering is expected to generate $19.29 billion, 2.6% more than the original $18.8 billion Bank of America  originally announced it would try to sell...
As I said earlier, if you want to get long BAC look for a 5-10% discount to its current price.  It appears demand was such that they could bring it on the tight end of my discount range.  Ultimately, BAC will be able to throw off the government yoke and take care of its business.  While recent press reports have stated that contenders for the CEO slot have suggested breaking the firm up, in the long run the company should have the right mix of businesses to be successful.



Disclosure: Disclosure: Long BAC preferreds

Disclosure: Disclosure: Long BAC preferreds