A share of BAC in every pot...
Looks like they have been busy before todays a/h 825 million share dump (offering).
May 19, 2009, 8:17 p.m. EST
B. of A. raises over $13 billion in ATM program
Giant lender concludes program that had it selling shares at market rates
By Alistair Barr & John Letzing, MarketWatch
SAN FRANCISCO (MarketWatch) -- Bank of America Corp. took a big step toward its goal of raising billions of dollars in new equity capital late Tuesday.
The finance giant said in a statement that since May 8, it has issued 1.25 billion shares at an average price of $10.77 each as part of its now-concluded at-the-market, or ATM program, representing gross proceeds of roughly $13.47 billion.
"We're pleased to have this portion of our capital plan completed," Bank of America Chief Financial Officer Joe Price said in a statement.
A government stress test had concluded in early May that Bank of America (BAC 11.25, -0.48, -4.09%) needs almost $34 billion in new equity capital to help it keep lending if the recession gets worse in coming years.
Part of Bank of America's capital-raising response was to launch the ATM program, in which the giant lender sold shares over time at prevailing market prices.
Goldman Sachs analysts had estimated on Monday that Bank of America had raised roughly $5 billion under the ATM program, adding that it might only take another six trading days to reach $8.5 billion.
In addition, CNBC had reported earlier Tuesday that Bank of America was planning to offer 825 million shares at $10 a share in order to raise $8.25 billion in new equity capital, in a move that could put the bank's ATM program on hold.
Bank of America shares fell in after-hours action Tuesday following the CNBC report, but then recovered to rise slightly to $11.29.
AI
