ASSOCIATED BANC-CORP
(a Wisconsin corporation)
ASBC Capital I
(a Delaware statutory business trust)
Capital Securities
TERMS AGREEMENT
---------------
May 23, 2002
To: Associated Banc-Corp
0000 Xxxxxx Xxxx
Xxxxx Xxx, XX 00000
Ladies and Gentlemen:
We understand that ASBC Capital I, a statutory business trust formed under
the laws of the state of Delaware for the purpose of issuing capital securities
(the "Trust"), and Associated Banc-Corp, a Wisconsin corporation (the
"Company"), propose to issue and sell $175,000,000 aggregate liquidation amount
of capital securities (the "Capital Securities") (such securities also being
hereinafter referred to as the "Initial Underwritten Securities"). Subject to
the terms and conditions set forth or incorporated by reference herein, we the
underwriters named below (the "Underwriters") offer to purchase, severally and
not jointly, the liquidation amount of Underwritten Securities opposite their
names set forth below at the purchase price set forth below, and a proportionate
share of Option Underwritten Securities set forth below, to the extent any are
purchased.
Amount of Initial Underwritten
Underwriter Securities to be Purchased
============================================= ==============================
Xxxxxxx Lynch, Pierce, Xxxxxx & Xxxxx
Incorporated . . . . . . . . . . . . . . . 1,152,000
Xxxxxx Brothers Inc.. . . . . . . . . . . . . 1,147,000
Xxxxxxx Xxxxx Xxxxxx Inc. . . . . . . . . . . 1,147,000
Sandler X'Xxxxx & Partners, L.P.. . . . . . . 1,147,000
UBS Warburg LLC . . . . . . . . . . . . . . . 1,147,000
Xxxxxx X. Xxxxx & Co. Incorporated. . . . . . 175,000
Credit Suisse First Boston Corporation. . . . 175,000
X.X. Xxxxxx Securities Inc. . . . . . . . . . 175,000
X.X. Xxxxxxx & Sons, Inc. . . . . . . . . . . 35,000
CIBC World Markets Corp.. . . . . . . . . . . 35,000
Deutsche Bank Securities Inc. . . . . . . . . 35,000
First Union Securities, Inc.. . . . . . . . . 35,000
H&R BLOCK Financial Advisors, Inc.. . . . . . 35,000
HSBC Securities (USA) Inc.. . . . . . . . . . 35,000
Xxxxxxxxx & Company, Inc. . . . . . . . . . . 35,000
Xxxxx, Xxxxxxxx & Xxxxx, Inc. . . . . . . . . 35,000
Xxxx Xxxxx Xxxx Xxxxxx, Incorporated. . . . . 35,000
XxXxxxxx Investments Inc., a KeyCorp Company. 35,000
Prudential Securities Incorporated. . . . . . 35,000
Quick & Xxxxxx, Inc.. . . . . . . . . . . . . 35,000
Xxxxxxx Xxxxx & Associates, Inc.. . . . . . . 35,000
RBC Xxxx Xxxxxxxx Inc.. . . . . . . . . . . . 35,000
Xxxxxxx Xxxxxx & Co., Inc.. . . . . . . . . . 35,000
Xxxxxx, Xxxxxxxx & Company, Incorporated. . . 35,000
US Bancorp Xxxxx Xxxxxxx. . . . . . . . . . . 35,000
ABN AMRO Incorporated . . . . . . . . . . . . 10,000
Advest, Inc.. . . . . . . . . . . . . . . . . 10,000
BB&T Capital Markets, A division of Xxxxx and
Xxxxxxxxxxxx, Inc.. . . . . . . . . . . . . . 10,000
X.X. Xxxxxxxx & Co. . . . . . . . . . . . . . 10,000
Xxxxxxxxxx & Co. Inc. . . . . . . . . . . . . 10,000
Fifth Third Securities, Inc.. . . . . . . . . 10,000
J.J.B. Xxxxxxxx, X.X. Xxxxx, Inc. . . . . . . 10,000
Xxxxxx Xxxxxxxxxx Xxxxx LLC . . . . . . . . . 10,000
Mesirow Financial, Inc. . . . . . . . . . . . 10,000
Xxxxxx Xxxxxx & Company, Inc. . . . . . . . . 10,000
NatCity Investments, Inc. . . . . . . . . . . 10,000
Xxxxxx/Hunter Incorporated. . . . . . . . . . 10,000
SWS Securities, Inc.. . . . . . . . . . . . . 10,000
SunTrust Capital Markets, Inc.. . . . . . . . 10,000
__________
Total. . . . . . . . . . . . . . . . 7,000,000
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The Underwritten Securities shall have the following terms:
Capital Securities
DESIGNATED TRUST: ASBC Capital I
TITLE: 7 5/8% Trust Preferred Securities due June 15, 2032
RATINGS (MDY/S&P/FITCH): Baa1/BBB-/BBB+
NUMBER OF INITIAL
UNDERWRITTEN SECURITIES: 7,000,000
NUMBER OF OPTION
UNDERWRITTEN SECURITIES: 1,050,000
DISTRIBUTION RATE PER
SECURITY: 7.625%
DISTRIBUTION PAYMENT DATES: On each September 15, December 15, March 15 and June
15 commencing on September 15, 2002
LIQUIDATION AMOUNT PER
SHARE: $25
MATURITY DATE: June 15, 2032
REDEMPTION PROVISIONS: Callable beginning May 30, 2007 and any time
thereafter at par with 30 days notice
LISTING REQUIREMENTS: NYSE
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LOCK-UP PROVISIONS: For 30 days from May 23, 2002, ASBC Capital I and
Associated Banc-Corp will not offer, sell, contract
to sell or otherwise dispose of any 7 5/8% Trust
Originated Preferred Securities ("TOPrs") due June
15, 2032 (the "Preferred Securities"), any other
beneficial interests in ASBC Capital I, or any
preferred securities or other securities of ASBC
Capital I or Associated Banc-Corp that are
substantially similar to the Preferred Securities,
including any guarantee of such securities, or any
securities convertible into or exchangeable for or
representing the right to receive Preferred
Securities or any such substantially similar
securities of either ASBC Capital I or Associated
Banc-Corp, without prior written consent of Xxxxxxx
Xxxxx, Xxxxxx Xxxxxx & Xxxxx on behalf of the
Underwriters, except for the Preferred Securities
offered in connection with this offering.
INITIAL PUBLIC OFFERING
PRICE PER SECURITY: $25 plus accumulated distributions, if any, from May
30, 2002
PURCHASE PRICE PER
SECURITY: $25 plus accumulated distributions, if any, from May
30, 2002
UNDERWRITERS' COMMISSION TO
BE PAID BY ASSOCIATED BANC-
CORP: $5,512,500
INFORMATION PROVIDED TO
ASSOCIATED BANC-CORP FOR
USE IN THE PROSPECTUS
SUPPLEMENT: the first, third, eighth and ninth paragraphs and
the last two sentences of the tenth paragraph of the
section titled "Underwriting" of the Prospectus
Supplement.
OTHER TERMS AND CONDITIONS: None
CLOSING DATE AND LOCATION: May 30, 2002 at the offices of Xxxxxxx Xxxxxxx &
Xxxxxxxx, 000 Xxxxxxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx
00000, beginning at 9 A.M. (New York City time), or
at such other place and time as the Representative,
the Company and the Trust may agree upon in writing.
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Please accept this offer by signing a copy of this Terms Agreement in the
space set forth below and returning the signed copy to us.
Very truly yours,
XXXXXXX LYNCH, PIERCE, XXXXXX & XXXXX
INCORPORATED
By /s/ Xxxx Xxxxxxx
-------------------------------------
Authorized Signatory
Acting on behalf of itself and the other
named Underwriters.
Accepted:
ASSOCIATED BANC-CORP
By /s/ Xxxxxx X. Xxxxxxxxxxx
--------------------------------
Name: Xxxxxx X. Xxxxxxxxxxx
Title: Senior Vice President and
Treasurer
ASBC CAPITAL I
By: Associated Banc-Corp, as Sponsor
By /s/ Xxxxxxx X. Xxxx
--------------------------------
Name: Xxxxxxx X. Xxxx
Title: Senior Vice President and
Assistant Secretary
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