Investor Update: Bank of America to Redeem Series MM Preferred Shares

Bank of America Corporation announced it will redeem its Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series MM. This move also includes the corresponding depositary shares.

The redemption is set for January 28, 2025.

The Preferred Stock comes with a liquidation priority of $25,000 per share. Each depositary share signifies a 1/25th stake in a Preferred Stock share. The redemption price is $1,000 per depositary share.

The redemption price excludes accrued and unpaid dividends. However, declared dividends for the current period will still be paid, and investors will receive them separately from the redemption price.

Key Redemption Details

Investors will receive $21.50 per depositary share as a dividend. It covers the period from July 28, 2024, to January 28, 2025. The record date for this payment is January 1, 2025.

Payments are customarily made on January 28, 2025. Dividends stop accruing after the redemption date. Shareholders should take note of these critical dates.

The Depository Trust Company (DTC) will facilitate the redemption, and Computershare Inc. and Computershare Trust Company, N.A. will act as the redemption agents.

Their expertise ensures a seamless redemption process for all investors.

Strategic Implications for Investors

This redemption reflects Bank of America’s focus on efficient capital management. The bank’s financial stability enables it to optimize its capital structure, and this move underscores its commitment to shareholder value.

Investors must note that dividends will no longer accrue after the redemption date. Separate dividend payments ensure investors receive their full entitlement, providing clarity and avoiding confusion during redemption.

Shareholders may need to explore reinvestment opportunities after the redemption. Transitioning these funds into other income-generating investments could preserve portfolio income.

Financial advisors can provide tailored strategies for reinvestment.

Bank of America has emphasized that this announcement is not a formal notice of redemption. Investors should review the official notice for precise terms. Staying informed will ensure a smooth transition through the process.

This redemption decision aligns with Bank of America’s broader strategic goals. It highlights the bank’s adaptability to market dynamics. These proactive measures contribute to long-term growth and profitability.

Bank of America remains a leader in global finance. Its actions continue to reinforce trust among investors and stakeholders. This redemption serves as another example of its disciplined approach to financial management.

Investors should stay vigilant for any further updates. Monitoring communications between the bank and the redemption agent is essential. It ensures clarity and readiness for the redemption process.

The bank’s strategic decisions consistently prioritize shareholder value. This redemption is a step toward an even stronger capital position, and shareholders stand to benefit from these thoughtful, calculated moves.

Stay tuned for more updates on this and other financial industry news.