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Bank of America has priced 825 million shares at $10 each, sources familiar with the offering told CNBC.
Bank of America also is considering an exchange of preferred for common shares, but no details on the size of that exchange were available.
The sale price is 11.1 percent below Bank of America's $11.25 closing price [BAC
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] on Tuesday. The bank's shares, which briefly dropped about 5 percent in late trading, later were close to flat.
Click here for real-time, before-hours Bank of America stock quotes.
In a statement late on Tuesday, Bank of America said that it had issued 1.25 billion shares since the program began on May 8 at an average price of $10.77, representing gross proceeds of approximately $13.47 billion.
"We're pleased to have this portion of our capital plan completed," Chief Financial Officer Joe Price. "This strengthens and diversifies our capital structure."
A sale of stock would help the bank, America's biggest, lender raise capital, after regulators told it to bolster its finances following a government "stress test" of its ability to handle a deep recession.
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Nell Redmond / AP A Bank of America branch. |
Bank of America has said it plans to raise $17 billion of common equity. It said this could involve the issuance of 1.25 billion common shares, and involve the conversion at less than face value of some preferred shares held by private investors.
The bank has said it plans to raise roughly $17 billion more from asset sales and other means. Last week, it sold part of its stake in China Construction Bank for $7.3 billion.
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- Reuters contributed to this report.
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