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FRIDAY, NOVEMBER 27, 2009
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Merrill Aims to Raise $8.5B, Prune Bad Debt

Brokerage announces surprise stock sale, $5.7B writedown

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(Newser) – Merrill Lynch announced a surprise stock offering today aimed at raising $8.5 billion for the brokerage, strapped by the mortgage and credit crises, the Financial Times reports. It also said it was writing down a further $5.7 billion in bad debt, and is selling collateralized debt obligations nominally worth $30.6 billion for $6.7 billion.

Merrill Lynch is selling mortgage debt valued at $30.6 billion for $6.7 billion, or about 22 cents on the dollar.
Merrill Lynch is selling mortgage debt valued at $30.6 billion for $6.7 billion, or about 22 cents on the dollar.   (AP Photo)
Merrill Lynch announced an $8.5 billion share offering today, and said it would write down $5.7 billion on the sale of bad mortgage debt.
Merrill Lynch announced an $8.5 billion share offering today, and said it would write down $5.7 billion on the sale of bad mortgage debt.   (AP Photo)
John Thain, CEO of Merrill Lynch, speaks in this January file photo.
John Thain, CEO of Merrill Lynch, speaks in this January file photo.   (AP Photo)
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Merrill Lynch • writedowns • collateralized debt obligations • stock offering

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