Bank of America 1999 Annual Report Download - page 24

Our objective is to understand our
clients’ issues and use our product
knowledge and capability to develop
and execute the appropriate tailored
client solution, a real plus for the client.
In turn, this solution and execution
expertise will enable us to deepen and
broaden our client relationships, or as
others may say, to become the preferred
financial advisor. This status allows our
business to grow and expand, benefiting
our shareholders.
Some representative transactions
in 1999 reflected our ability to deliver
the value of our vast range of resources
for clients.
In 1999, we were financial advisors to
EOG Resources, one of the largest inde-
pendent oil and gas producers in the
country and 53 percent owned by Enron
Corporation. When Enron decided to sell
its interest in EOG, we acted as advisors
to EOG and helped them structure the
financial package used to purchase
Enron’s shares. In addition, we under-
wrote a $1.3 billion credit facility and
were joint lead manager on a secondary
offering of 34 million shares. This
$790 million sale was the largest
common stock offering ever made
by an independent oil and gas company.
For Stater Brothers, a supermarket
chain in Southern California, we financed
the purchase of additional stores. Having
provided financial solutions to this client
for more than 20 years, we called together
a client team to develop a financing
proposal. This team, which included
members from Commercial Banking,
Middle Market Investment Banking and
Banc of America Securities, decided that
the best alternative was a high yield debt
offering. We were the sole lead manager
on a $450 million offering for this client.
Teamwork was especially important
when we were chosen as the exclusive
financial advisor to a group of investors
who acquired the Lone Cypress
Company, owner of the legendary
Pebble Beach golf resort in California.
Demonstrating our ability to offer
one-stop shopping, we provided merger
and acquisition advisory services and
developed a winning financing structure
that included debt, equity and the
involvement of many areas of the bank.
These transactions not only illustrate
the solution capabilities we brought to
the issuers, they also demonstrate our
ability to meet the needs of the investors
who purchased the securities financing
the transactions.
“The objective of our client teams —
whether working with fast-growing
startups, the largest multinational or the
institutional investor — is to provide
the kind of insight and resources that
will help our clients win in the
marketplace,” says Murray.
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Capabilities
Debt Capital Raising
•Syndicated Finance: #1in number
of deals.
•Commercial Paper: #1in commercial
bank-affiliated dealer in number of
programs.
•Project Finance: #3in global
lead-managed transactions.
•High-Grade Securities: #4in lead and
co-managed transactions.
•Asset-Backed Securities: #6in lead
and co-managed transactions.
•High-Yield Securities: #10 in lead-
managed transactions.
Equity Capital Raising and Advisory
•Equity Underwriting: Completed
94 transactions totaling $23 billion.
•Equity Trading: #9in trading volume of
listed and Nasdaq shares.
•Equity Derivatives: Market leader in
equity derivative products.
•Merger & Acquisition Advisory:
Completed more than 100 transactions
with total value exceeding $20 billion.
#1real estate, lodging and gaming
M&A advisor.
Risk Management
•Foreign Exchange: #1foreign exchange
bank to major U.S. corporations.
Market maker in more than
90 currencies in established and
emerging markets.
•Derivatives: #1in interest rate
products; #2overall derivatives
provider to U.S. corporations.
Treasury Management
•Cash Management: #1provider of
services to large U.S. corporations and
middle market companies; named one
of the “Ten Masters of Electronic
Delivery” by Future Banker.
•Trade Services: Leading provider to
large U.S. corporations and middle
market companies.