Bank of America gets tenders for $3.59 billion of notes so far; offer cap now $3.5 billion

By Susanna Moon

Chicago, Feb. 2 - Bank of America Corp. and wholly owned subsidiary Merrill Lynch & Co., Inc. investors tendered $3,593,000,000 of 19 series of notes by the early tender deadline at 5 p.m. ET on Feb. 1.

The companies are now offering to purchase up to $3.5 billion of the subordinated notes. The tender offer cap was raised from $1.5 billion later in the day on Feb. 2 after the company announced the early tender results in the morning.

Investors tendered the following amounts of notes, listed in order of acceptance priority level:

• $307 million of BofA's $497 million of 6.5% subordinated notes due September 2037 with a total purchase price of $952.08 per $1,000 principal amount;

• $517 million of Merrill's $1.32 billion of 6.22% subordinated notes due Sept. 15, 2026 with a total purchase price of $950.78;

• $130 million of BofA's $483 million of 6 7/8% subordinated debentures due 2028 with a total purchase price of $972.51;

• £130 million of Merrill's £375 million of 8.125% subordinated fixed-rate notes due June 2, 2028 with a total purchase price of £954.10 per £1,000 of notes;

• $194 million of BofA's $449 million of 7.25% subordinated notes due 2025 with a total purchase price of par;

• €238 million of BofA's €805 million of 4.625% subordinated notes due February 2017 with a total purchase price of €917.50 per €1,000 of notes;

• $74 million of BofA's $398 million of 6.8% subordinated notes due 2028 with a total purchase price of $950.15;

• £46 million of BofA's £500 million of 5.25% subordinated notes due November 2016 with a total purchase price of £936.73;

• C$162 million of BofA's C$500 million of 5.15% subordinated notes due May 2017 with a total purchase price of C$941.98;

• $416 million of BofA's $1.67 billion of 5.42% subordinated notes due March 15, 2017 with a total purchase price of $976.66;

• $65 million of BofA's $250 million of 6.7% subordinated debentures due 2028 with a total purchase price of $939.43;

• £34 million of Merrill's £300 million of 5.5% subordinated fixed-rate registered notes due Nov. 22, 2021 with a total purchase price of £805.39;

• $94 million of BofA's $500 million of floating-rate subordinated notes due 2016 with a total purchase price of $810.39;

• $197 million of Merrill's $958 million of 5.7% subordinated notes due May 2, 2017 with a total purchase price of $981.74;

• $224 million of Merrill's $1.87 billion of 6.05% subordinated notes due May 16, 2016 with a total purchase price of par;

• €13 million of Merrill's €650 million of 4.625% subordinated fixed-rate registered notes due Sept. 14, 2018 with a total purchase price of €818.85;

• €185 million of BofA's €1.58 million of 4% fixed/floating callable subordinated notes due March 2018 with a total purchase price of €825;

• €208 million of BofA's €1.25 billion of 4.75% fixed/floating callable subordinated notes due May 2017 with a total purchase price of €835; and

• $45 million of BofA's $700 million of 5.25% subordinated notes due 2015 with a total purchase price of $986.21.

The payouts include a cash payment of $30.00, €30.00, £30.00 or C$30.00, as applicable, for notes tendered by the early deadline.

Holders may continue to tender notes until midnight ET on Feb. 15. Settlement is expected to occur within two business days after the offer ends. The offer began on Jan. 19.

Bank of America will also pay accrued interest.

D.F. King & Co., Inc. is the tender agent and information agent (800 549-6746 or call 212 269-5550 if international; bofa@dfking.com). Bank of America Merrill Lynch is the dealer manager (888 292-0070 or 980 388-3646).

Bank of America is a banking and financial services company based in Charlotte, N.C.

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