M&I Marshall & Ilsley ends oversubscribed offer for four notes series

By Jennifer Chiou

New York, Dec. 30 - M&I Marshall & Ilsley Bank announced the completion of its oversubscribed tender offer for up to $400 million of four series of its notes.

The tender ended at 11:59 p.m. ET on Dec. 29.

The company received total tenders for $433,562,000 of notes, and it will accept $399,998,000 of tenders for an aggregate purchase price of $363,436,140, excluding accrued interest.

It had received tenders for $433,082,000 of notes at 5 p.m. ET on Dec. 14, which was the early tender date.

Covered by the tender offer were the bank's $500,095,000 of floating-rate subordinated bank notes due 2012, $188,093,000 of senior floating-rate notes due June 1, 2011, $189,325,000 of senior 5.15% fixed-rate notes due Feb. 22, 2012 and $150,702,000 of 5.3% senior notes due Sept. 8, 2011.

The notes are listed in order of acceptance priority level.

Overall, holders tendered $139,084,000 of the floaters due 2012, $109,237,000 of the floaters due 2011, $107,809,000 of the 5.15% notes and $77,432,000 of the 5.3% notes.

At the early tender date, holders had tendered $139,064,000 of the floaters due 2012, $109,237,000 of the floaters due 2011, $107,677,000 of the 5.15% notes and $77,104,000 of the 5.3% notes.

Because the offer was oversubscribed, not all of the tendered notes were accepted for purchase. The company first accepted up to $200 million of the floaters due 2012. It then accepted the remaining notes in order of acceptance priority level. Since the amount of the cap left was not enough to purchase all of the tendered notes of any particular series, those notes were accepted on a pro rata basis.

In accordance with the acceptance priority levels and proration terms of the offer, the bank said it accepted for purchase all debt securities with an acceptance priority level of 3 or higher and $43,868,000 of priority level 4 notes, representing 56.7% of the valid tenders for those notes.

For each $1,000 principal amount, the bank said paid $800 for floaters due 2012, $925 for floaters due 2011, $995 for 5.15% notes and $1,000 for 5.3% notes.

In each case, the total payment included a $40.00 premium for notes tendered by the early tender date.

Goldman Sachs & Co. (800 828-3182 or collect at 212 902-5183) was the dealer manager, and Global Bondholder Services Corp. (866 387-1500 or 212 430-3774) was the depositary and information agent.

M&I Marshall & Ilsley Bank is a Milwaukee-based bank and an affiliate of Marshall & Ilsley Corp.

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