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In 2005, several transactions completed with the collaboration of formerly siloed business units proved that Bank of America’s new focus on working together produces results—for customers and shareholders.
These deals are merely the most visible examples of how Bank of America is
leveraging its expertise across divisions to say “yes” to more customers more often. Working together, the bank’s units will soon be able to match consumers who need higher-risk
financing with institutional clients who want to invest in that level of risk. As a result, we will reap increased profits and shareholder value while serving the needs of many customers, both consumers and investors.
In one example, Banc of America Securities provided MetLife with an integrated solution for the acquisition of Citigroup’s Travelers Life and Annuity and essentially all of Citigroup’s international insurance business. As a financial advisor to MetLife, we also served as joint global
book-running coordinator on multiple securities offerings totaling $6.9 billion to finance the $11.8 billion deal.
This acquisition financing was one of the largest ever when it was announced in June. Launched and concluded in a three-week period, it accessed multiple markets to optimize the financing sources—the perpetual preferred market, mandatory convertible market, U.S. high-grade market and sterling market. Various teams worked together to develop this highly complex financing plan to minimize the cost for the client and maximize both earnings per share and
return on equity. The success of the MetLife deal highlights the effectiveness of the bank’s ability to provide clients with cost-effective, multiproduct solutions.
Another example of how strong teamwork differentiates Bank of America was the leveraged buyout (LBO) of Toys “R” Us by Bain Capital, Vornado Realty Trust and KKR. In serving as both debt provider and financial advisor to the
financial sponsors, the bank was instrumental in the completion of the LBO. When announced in March, this deal ($6.6 billion plus the assumption of debt) was the largest retail LBO in U.S. history and the third-largest LBO of any kind. The transaction was named Euromoney magazine’s 2005 “Financing Package of the Year,” and Investment Dealers’ Digest’s “Real Estate Deal of the Year.”
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When it was announced, the Toys “R” Us deal was the largest retail leveraged buyout in U.S. history and the third-largest of any kind. From left, dealmakers Karim Assef, managing director, Banc of America
Securities; Matthew Levin, managing
director, Bain Capital Partners, LLC;
and Michael Fascitelli, president,
Vornado Realty Trust, at Toys “R” Us
at Times Square in New York.
Closing the transaction required partnerships from around the globe, including several U.S. and European industry groups from the Investment Banking team; the Leveraged Finance and High-Yield Capital Markets teams; Commercial Mortgage-Backed Securities; Commercial Banking; the Derivatives
product group; and Real Estate Syndications.
These transactions show how our diverse capabilities, when combined with our innovation, hard work and cooperation, accelerate our growth. 
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