BoA filing says no assurance on Countrywide debt

In a filing with the Securities and Exchange Commission on Thursday, Charlotte-based Bank of America said Countrywide had outstanding debt of about $97.2 billion as of Dec. 31.

The total included $11.48 billion in revolving credit facilities, "which Bank of America expects will be repaid upon closing of the merger." In addition, Countrywide has some $47.68 billion in advances from the Federal Home Loan Bank system, which Bank of America "expects will remain outstanding until repaid by Countrywide Bank." The bank is a division of Countrywide Financial, which is based in Calabasas, Calif.

What will happen to the balance of about $38 billion including bonds and other debt instruments appeared to be more problematic.

The filing said that Bank of America "is currently evaluating alternatives for the disposition of the remaining Countrywide indebtedness, including the possibility of redeeming, assuming or guaranteeing some or all of the debt or allowing it to remain outstanding as obligations of Countrywide."

It added: "Bank of America has made no determination in this regard, and there is no assurance that any of such debt would be redeemed, assumed or guaranteed."

In January, Countrywide agreed to sell itself to Bank of America Corp. in an all-stock deal valued at $4 billion. The deal is expected to close in the third quarter.

Earlier this week, Countrywide reported that it lost $893 million in the first quarter and took $3.05 billion in credit-related charges.

Bank of America shares traded up 66 cents at $40.05 at midday Friday. Countrywide shares rose 10 cents to $6.15.