M&I Marshall & Ilsley tender offer oversubscribed at early deadline

By Angela McDaniels

Tacoma, Wash., Dec. 15 - M&I Marshall & Ilsley Bank had received tenders for $433,082,000 principal amount of notes as of 5 p.m. ET on Dec. 14, which was the early tender date in a tender offer for up to $400 million of four series of notes that began Dec. 1.

Covered by the tender offer are 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.

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

For each $1,000 principal amount, the bank said it will pay $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 includes a $40 premium for notes tendered by the early tender date.

The tender offer will expire at 11:59 p.m. ET on Dec. 29.

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