boa-merrill-raises-equity-to-repay-tarp

BoA Merrill raises equity to repay Tarp

Bank of America Merrill Lynch raises $19.3 billion through a share sale as part of a plan to repay its Tarp funding and extricate itself from government controls.

Bank of America Merrill Lynch has raised $19.3 billion through a sale of securities -- the largest by a US company since 2000 -- as part of its Tarp repayment programme.

BoA Merrill issued 1.29 billion common equivalent securities, comprising one depositary share and one warrant, which are each convertible into one common share. The issue is subject to shareholder approval. BoA Merrill shares closed at $16.28 on Friday.

The offering, which was completed after the US market closed on Thursday, follows an earlier $13.5 billion share sale by BoA Merrill in May. At that time the bank issued 1.25 billion shares at an average price of $10.77...

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