Bank of America gets tenders for $3.65 billion of 19 series of notes

By Marisa Wong

Madison, Wis., Feb. 16 - Bank of America Corp. and wholly owned subsidiary Merrill Lynch & Co., Inc. said that investors had tendered $3,652,000,000 of 19 series of notes as of midnight ET on Feb. 15, the expiration of their tender offer.

The companies capped the amount to be spent to repurchase notes at $3.5 billion. The total purchase price of notes tendered by the expiration time is $3.41 billion. As a result, all tendered notes will be accepted for purchase.

The tender cap was previously raised from $1.5 billion after the company announced the early results of the offer. As of 5 p.m. ET on Feb. 1, the early deadline, investors had already tendered $3,593,000,000 of the notes.

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

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

• $517 million of Merrill Lynch's $1.32 billion of 6.22% subordinated notes due Sept. 15, 2026 with a total purchase price of $950.78 per $1,000 of notes;

• $131 million of Bank of America's $483 million of 6 7/8% subordinated debentures due 2028 with a total purchase price of $972.51 per $1,000 of notes;

• £130 million of Merrill Lynch'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 Bank of America's $449 million of 7.25% subordinated notes due 2025 with a total purchase price of par;

• €238 million of Bank of America'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 Bank of America's $398 million of 6.8% subordinated notes due 2028 with a total purchase price of $950.15 per $1,000 of notes;

• £46 million of Bank of America's £500 million of 5.25% subordinated notes due November 2016 with a total purchase price of £936.73 per £1,000 of notes;

• C$162 million of Bank of America's C$500 million of 5.15% subordinated notes due May 2017 with a total purchase price of C$941.98 per C$1,000 of notes;

• $416 million of Bank of America's $1.67 billion of 5.42% subordinated notes due March 15, 2017 with a total purchase price of $976.66 per $1,000 of notes;

• $65 million of Bank of America's $250 million of 6.7% subordinated debentures due 2028 with a total purchase price of $939.43 per $1,000 of notes;

• £34 million of Merrill Lynch's £300 million of 5.5% subordinated fixed-rate registered notes due Nov. 22, 2021 with a total purchase price of £805.39 per £1,000 of notes;

• $95 million of Bank of America's $500 million of floating-rate subordinated notes due 2016 with a total purchase price of $810.39 per $1,000 of notes;

• $197 million of Merrill Lynch's $958 million of 5.7% subordinated notes due May 2, 2017 with a total purchase price of $981.74 per $1,000 of notes;

• $226 million of Merrill Lynch's $1.87 billion of 6.05% subordinated notes due May 16, 2016 with a total purchase price of par;

• €20 million of Merrill Lynch's €650 million of 4.625% subordinated fixed-rate registered notes due Sept. 14, 2018 with a total purchase price of €818.85 per €1,000 of notes;

• €185 million of Bank of America's €1.58 million of 4% fixed/floating callable subordinated notes due March 2018 with a total purchase price of €825 per €1,000 of notes;

• €230 million of Bank of America's €1.25 billion of 4.75% fixed/floating callable subordinated notes due May 2017 with a total purchase price of €835 per €1,000 of notes; and

• $45 million of Bank of America's $700 million of 5.25% subordinated notes due 2015 with a total purchase price of $986.21 per $1,000 of notes.

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

Bank of America will also pay accrued interest.

Settlement is expected to occur on Feb. 17. The offer began on Jan. 19.

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

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

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