COLUMBUS, Ohio, Feb. 18 /PRNewswire/ -- BANC ONE CORPORATION (NYSE: ONE)
(the Company) announced today that it will commence an offer to exchange up to
$200 million of newly issued Subordinated Notes due March 1, 2019 for any and
all of its $200 million 9-7/8% Subordinated Notes due March 1, 2009.
The Company is offering to exchange for each $1,000 principal amount of
its 9-7/8% Subordinated Notes an equal principal amount of a new note with a
longer maturity of March 1, 2019. The new Subordinated Notes will have the
same interest rate as the 9-7/8% Subordinated Notes until March 1, 2009, and,
thereafter, the interest rate will be calculated for the final 10 years of
maturity based on a fixed spread pricing formula.
For the 9-7/8% Subordinated Notes, a reference price will be determined
using a specified fixed spread pricing formula. The reference price of the
9-7/8% Subordinated Notes will be based on a yield to the maturity date of the
9-7/8% Subordinated Notes equal to the yield on the 5-1/2% U.S. Treasury Note
due February 15, 2008 plus 88 basis points. For the new Subordinated Notes
due March 1, 2019, an extension coupon will be determined for the period from,
and including, March 1, 2009 to, but not including, the maturity date,
March 1, 2019. The extension coupon will be such that the reference price of
the new Subordinated Notes due March 1, 2019 will be at least $15.00 greater
than the reference price of the 9-7/8% Subordinated Notes per $1,000 principal
amount thereof. The reference price of the new Subordinated Notes due March
1, 2019 will be based on a yield to the maturity date of the new Subordinated
Notes due March 1, 2019 equal to the yield on the 6-3/8% U.S. Treasury Note
due August 15, 2027 plus 100 basis points.
The reference prices and extension coupon will be determined as of
2:00 p.m., New York City time, on the second business day prior to the
expiration date. The expiration date for the Exchange Offer is 5:00 p.m., New
York City time, on Wednesday, March 18, 1998 unless extended.
The purpose of the Exchange Offer is to take advantage of currently
available interest rates by exchanging a portion of the Company's long-term
debt portfolio upon terms which the Company believes are more beneficial to
it. The company intends to accomplish this objective by extending the overall
maturity of a portion of their long-term debt portfolio.
BANC ONE CORPORATION had managed total assets of $147.0 billion, total
assets of $115.9 billion, and common equity of $10.2 billion at December 31,
1997. BANC ONE operates over 1,300 banking centers in 12 states. BANC ONE
also owns several additional corporations that engage in a full range of
financial services. Information about BANC ONE's financial results and it
products and services can be accessed on the Internet at:
http://www.bankone/com; through InvestQuest at: http://www.investquest.com;
or through Fax-on-demand at: 614-844-3860.
This announcement constitutes neither an offer to sell nor a solicitation
of an offer to buy the Company's notes that are the subject of the exchange
offer. Offers are made only by the offering circular for the exchange offer
which can be obtained by calling Georgeson & Company Inc., the Information
Agent, at 212-440-9800 (call collect) for banks and brokers or 800-223-2064
for all others. In addition, holders of the 9-7/8% Subordinated Notes may
contact Deutsche Morgan Grenfell, Inc., the financial advisor, at 212-469-7645
with questions regarding the exchange offer.
SOURCE Banc One Corporation
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Related links:
http://www.investquest.com
CONTACT:
Steven R. Bluhm of Banc One, 614-248-6443
CNOC: http://www.prnewswire.com or fax, 800-758-5804, ext.
084675
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