WASHINGTON, March 1 (Reuters) – The U.S. Treasury Department said on Monday it will auction off 272.17 million warrants to buy stock in Bank of America Corp later this week.
The Treasury said the auction of warrants, which it received in return for pumping taxpayer capital into the company, would be auctioned on March 3, with Deutsche Bank Securities Inc as the sole book-running manager.
The warrant auction will be divided into two groups, the Treasury said.
Bidders will be able to place bids at any price increments of $0.05 for the first group totaling 150.38 million known as “A” warrants at or above the minimum bid price of $7 per warrant.
Bidders will be able to place bids at any price increments of $0.05 for the second group of 121.79 million known as “B” warrants at or above the minimum bid price of $1.50 per warrant.
Bank of America paid back the $45 billion in financial rescue funds, known as the Troubled Asset Relief Program, in December 2009 and was not planning to repurchase its warrants.