M&I Marshall & Ilsley Bank Announces Completion of Its Cash Tender for Up to $400,000,000 in Aggregate Principal Amount of Debt
December 30 2009 - 12:31PM
PR Newswire (US)
MILWAUKEE, Dec. 30 /PRNewswire/ -- M&I Marshall & Ilsley
Bank (M&I Bank) announced the final results and expiration of
its offer to purchase debt securities (the "Tender Offer"), which
will result in M&I Bank purchasing $399,998,000 in aggregate
principal amount of its debt securities for an aggregate purchase
price of $363,436,140 (excluding accrued interest). As of 11:59
p.m., Eastern Standard Time, on December 29, 2009 (the "Expiration
Date"), M&I Bank had received tenders of debt securities having
an aggregate principal amount of $433,562,000 as set forth in the
table below: Aggregate Principal Total Amount Aggregate Principal
to be Principal Amount Outstanding Amount Tendered After
Outstanding As of Settlement Acceptance As of 11:59 p.m., on Title
of CUSIP Priority December December December Security Numbers Level
1, 2009 29, 2009 30, 2009 -------- ------- ----- ------- --------
-------- Floating Rate Subordinated Bank Notes due 2012 55259PAF3 1
$500,095,000 $139,084,000 $361,011,000 Senior Floating Rate Notes
due June 1, 2011 5525V0AZ9 2 $188,093,000 $109,237,000 $78,856,000
Senior 5.150% Fixed Rate Notes due February 22, 2012 5525V0BD7 3
$189,325,000 $107,809,000 $81,516,000 5.30% Senior Notes due
September 8, 2011 5525V0BA3 4 $150,702,000 $77,432,000 $106,834,000
"The completion of the tender offer generates Tier 1 capital,
reduces future interest expense, and provides M&I Bank a return
on cash invested that exceeds returns available on investment
securities," said Greg Smith, senior vice president and chief
financial officer. "The tender represents an efficient use of our
robust cash and liquidity position." In accordance with the
acceptance priority levels and proration terms of the Tender Offer,
M&I Bank has accepted for purchase all debt securities with an
acceptance priority level of 3 or higher and $43,868,000 in
aggregate principal amount of debt securities with an acceptance
priority of 4 (representing approximately 56.7 percent of the
validly tendered notes of such series) that were validly tendered
at or prior to the Expiration Date. Any tendered debt securities
that were not accepted for purchase will be returned without
expense to the tendering holder. In addition to receiving the
applicable consideration, holders of debt securities validly
tendered and accepted for purchase will receive accrued and unpaid
interest on those debt securities from the last interest payment
date for those debt securities up to, but not including, the
settlement date for those debt securities. Goldman, Sachs & Co.
is serving as Dealer Manager and Global Bondholder Services
Corporation is serving as Depositary and Information Agent in
connection with the Tender Offer. Persons with questions regarding
the Tender Offer should contact Goldman, Sachs & Co. at
800-828-3182 (toll free) or 212-902-5183 (collect). Requests for
copies of the Offer to Purchase or the Letter of Transmittal may be
directed to Global Bondholder Services Corporation at (866)
387-1500 (toll free) or (212) 430-3774 (collect for banks and
brokers). This press release does not constitute an offer to buy or
the solicitation of an offer to sell any securities, nor shall
there be any purchase of securities of M&I Bank in any state or
jurisdiction in which such an offer, solicitation or purchase would
be unlawful. The Tender Offer was made only pursuant to the Offer
to Purchase dated December 1, 2009 (the "Offer to Purchase") and
the related Letter of Transmittal. M&I Bank may, from time to
time to the extent permitted by applicable law, acquire any of the
above debt securities that remain outstanding after the Expiration
Date through open market purchases or privately negotiated
transactions, one or more additional tender or exchange offers or
otherwise, for prices that may be less than, equal to or greater
than the applicable tender offer consideration set forth in the
Offer to Purchase. M&I Marshall & Ilsley Bank is an
affiliate of Marshall & Ilsley Corporation (NYSE:MI), a
diversified financial services corporation headquartered in
Milwaukee, Wis., with $58.5 billion in assets. Founded in 1847,
M&I Marshall & Ilsley Bank is the largest Wisconsin-based
bank, with 192 offices throughout the state. In addition, M&I
has 53 locations throughout Arizona; 33 offices in Indianapolis and
nearby communities; 36 offices along Florida's west coast and in
central Florida; 16 offices in Kansas City and nearby communities;
26 offices in metropolitan Minneapolis/St. Paul, and one in Duluth,
Minn.; and one office in Las Vegas, Nev. M&I's Southwest Bank
subsidiary has 17 offices in the greater St. Louis area. M&I
also provides trust and investment management, equipment leasing,
mortgage banking, asset-based lending, financial planning,
investments, and insurance services from offices throughout the
country and on the Internet (http://www.mibank.com/ or
http://www.micorp.com/). M&I's customer-based approach,
internal growth, and strategic acquisitions have made M&I a
nationally recognized leader in the financial services industry.
Forward-Looking Statements This press release contains statements
that may constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995, such as
statements other than historical facts. These forward-looking
statements include, without limitation, statements with respect to
the financial condition of M&I Bank or M&I, results of
operations, plans, objectives, future performance and business,
including statements preceded by, followed by or including the
words "believes," "expects," "anticipates," references to estimates
or similar expressions. Future filings by M&I Bank with the
Federal Deposit Insurance Corporation or other regulatory agencies,
future filings by M&I with the Securities and Exchange
Commission, and statements other than historical facts contained in
written material, press releases and oral statements issued by, or
on behalf of, M&I Bank or M&I, may also constitute
forward-looking statements. Forward-looking statements are subject
to significant risks and uncertainties, and M&I Bank's and/or
M&I's actual results may differ materially from the results
discussed in such forward-looking statements. Factors that might
cause actual results to differ from the results discussed in
forward-looking statements include, but are not limited to, the
risk factors set forth in the Offer to Purchase. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect only M&I Bank's and/or M&I's
beliefs as of the date of this press release. All forward-looking
statements are based upon information available at the time of such
statements and M&I Bank and M&I, as the case may be, assume
no obligation to update any forward-looking statement. DATASOURCE:
M&I Marshall & Ilsley Bank CONTACT: Greg Smith, senior vice
president, chief financial officer of Marshall & Ilsley
Corporation, +1-414-765-7727 Web Site: http://www.mibank.com/
http://www.micorp.com/
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