Marshall & Ilsley $365 million mandatory talked at 6.0%-6.5% dividend, up 23%-27%

Nashville, July 26 - Marshall & Ilsley Corp. was in the convertible market Monday with $365 million of three-year non-callable mandatories talked with a 6.0% to 6.5% dividend and 23% to 27% initial conversion premium.

Goldman Sachs & Co. and JPMorgan Securities are joint bookrunners of the deal, which is set to price after the close Monday alongside $600 million of straight senior notes.

The convertible also will have dividend protection by way of a settlement rate adjustment for cash dividends on the common stock above the current common dividend yield level of roughly 2.18%.

A $35 million greenshoe is available.

The Milwaukee-based regional bank said proceeds from the offerings would be used to provide long-term financing for two recently completed acquisitions by its subsidiary Metavante Corp. and fund its pending acquisition of NYCE Corp.

On July 1, Metavante, the financial technology subsidiary of Marshall & Ilsley, completed the acquisition of Oklahoma City-based Advanced Financial Solutions Inc., the leading check-imaging technology provider for more than 7,000 financial institutions in the United States and 25 other countries. In conjunction with the AFS acquisition, Metavante also acquired CheckClear LLC, which owns and operates Endpoint Exchange - an electronic check image clearinghouse, and Medical Banking Exchange LLC, a healthcare payment-processing platform.

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