EX-1.(B) 4 doc3.txt 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 1200 Hansen Road Green Bay, WI 54304 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 ============================================= ============================== Merrill Lynch, Pierce, Fenner & Smith Incorporated . . . . . . . . . . . . . . . 1,152,000 Lehman Brothers Inc.. . . . . . . . . . . . . 1,147,000 Salomon Smith Barney Inc. . . . . . . . . . . 1,147,000 Sandler O'Neill & Partners, L.P.. . . . . . . 1,147,000 UBS Warburg LLC . . . . . . . . . . . . . . . 1,147,000 Robert W. Baird & Co. Incorporated. . . . . . 175,000 Credit Suisse First Boston Corporation. . . . 175,000 J.P. Morgan Securities Inc. . . . . . . . . . 175,000 A.G. Edwards & 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 Jefferies & Company, Inc. . . . . . . . . . . 35,000 Keefe, Bruyette & Woods, Inc. . . . . . . . . 35,000 Legg Mason Wood Walker, Incorporated. . . . . 35,000 McDonald Investments Inc., a KeyCorp Company. 35,000 Prudential Securities Incorporated. . . . . . 35,000 Quick & Reilly, Inc.. . . . . . . . . . . . . 35,000 Raymond James & Associates, Inc.. . . . . . . 35,000 RBC Dain Rauscher Inc.. . . . . . . . . . . . 35,000 Charles Schwab & Co., Inc.. . . . . . . . . . 35,000 Stifel, Nicolaus & Company, Incorporated. . . 35,000 US Bancorp Piper Jaffray. . . . . . . . . . . 35,000 ABN AMRO Incorporated . . . . . . . . . . . . 10,000 Advest, Inc.. . . . . . . . . . . . . . . . . 10,000 BB&T Capital Markets, A division of Scott and Stringfellow, Inc.. . . . . . . . . . . . . . 10,000 D.A. Davidson & Co. . . . . . . . . . . . . . 10,000 Fahnestock & Co. Inc. . . . . . . . . . . . . 10,000 Fifth Third Securities, Inc.. . . . . . . . . 10,000 J.J.B. Hilliard, W.L. Lyons, Inc. . . . . . . 10,000 Janney Montgomery Scott LLC . . . . . . . . . 10,000 Mesirow Financial, Inc. . . . . . . . . . . . 10,000 Morgan Keegan & Company, Inc. . . . . . . . . 10,000 NatCity Investments, Inc. . . . . . . . . . . 10,000 Parker/Hunter Incorporated. . . . . . . . . . 10,000 SWS Securities, Inc.. . . . . . . . . . . . . 10,000 SunTrust Capital Markets, Inc.. . . . . . . . 10,000 __________ Total. . . . . . . . . . . . . . . . 7,000,000
2 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 3 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 Merrill Lynch, Pierce Fenner & Smith 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 Simpson Thacher & Bartlett, 425 Lexington Avenue, New York, New York 10017, 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. 4 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, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED By /s/ Gary Swidler ------------------------------------- Authorized Signatory Acting on behalf of itself and the other named Underwriters. Accepted: ASSOCIATED BANC-CORP By /s/ Teresa A. Rosengarten -------------------------------- Name: Teresa A. Rosengarten Title: Senior Vice President and Treasurer ASBC CAPITAL I By: Associated Banc-Corp, as Sponsor By /s/ William M. Bohn -------------------------------- Name: William M. Bohn Title: Senior Vice President and Assistant Secretary 5