Underwriting Agreement among U.S. Bancorp, USB Capital V, and Underwriters for 7.25% Trust Preferred Securities (Nov. 29, 2001)

Contract Categories: Business Finance › Underwriting Agreements
Summary

U.S. Bancorp and USB Capital V entered into an agreement with several underwriters, including Merrill Lynch and Salomon Smith Barney, for the sale of 12 million 7.25% Trust Preferred Securities, totaling $300 million. U.S. Bancorp guarantees these securities, which represent preferred interests in USB Capital V. The agreement sets the purchase price, delivery terms, and references standard underwriting provisions. The closing is scheduled for December 7, 2001. This contract outlines the obligations of all parties in the issuance and sale of these securities.

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EX-1.1 3 c66467ex1-1.txt UNDERWRITING AGREEMENT, DATED 11/29/01 EXHIBIT 1.1 UNDERWRITING AGREEMENT November 29, 2001 U.S. Bancorp USB Capital V 601 Second Avenue South Minneapolis, MN 55402 Ladies and Gentlemen: We (the "Representatives") understand that USB Capital V, a business trust formed under the laws of the State of Delaware (the "Trust"), and U.S. Bancorp, a Delaware corporation, as sponsor of the Trust and as guarantor (the "Guarantor"), propose that the Trust issue and sell to the several underwriters named in Schedule I (the "Underwriters") 12,000,000 7.25% Trust Preferred Securities (liquidation amount $25 per Preferred Security) with an aggregate liquidation amount of $300,000,000(the "Offered Securities") representing preferred beneficial interests in the Trust. The Offered Securities are fully and unconditionally guaranteed by U.S. Bancorp. The Trust will issue the Offered Securities and common securities (liquidation amount $25 per common security) (the "Common Securities") in exchange for 7.25% Junior Subordinated Debentures of the Guarantor (the "Junior Subordinated Debentures"), due 2031, to be issued pursuant to a Junior Subordinated Indenture (the "Indenture") dated as of November 15, 1996 between the Guarantor and Wilmington Trust Company, as trustee (the "Debenture Trustee"). The Guarantor will, through the Indenture, the Junior Subordinated Debentures, the Amended and Restated Trust Agreement dated as of December 7, 2001 (the "Trust Agreement") among the Guarantor, as Sponsor to the Trust, First Union Trust Company, National Association, as Delaware Trustee and Property Trustee, and the Administrative Trustees named therein (collectively, the "Trustees"), the Guarantee Agreement dated as of December 7, 2001 (the "Guarantee") between the Guarantor and First Union Trust Company, National Association, as trustee (the "Guarantee Trustee"), taken together, fully, irrevocably and unconditionally guarantee on a subordinated basis all of the Trust's obligations under the Offered Securities. Subject to the terms and conditions set forth herein and incorporated by reference herein, the Guarantor and the Trust hereby agree that the Guarantor shall sell to each of the Underwriters, and each of the Underwriters agrees, severally and not jointly, to purchase the numbers of the Offered Securities set forth opposite the name of such Underwriter at a purchase price of $24.2125 per Offered Security, plus accrued distributions, if any (the "Purchase Price"). The Offered Securities shall have the terms set forth in the Prospectus Supplement dated November 29, 2001. Except as otherwise provided herein, all the provisions contained in the document entitled "U.S. Bancorp Underwriting Agreement Standard Provisions (Capital Securities) (October 25, 2001)" (the "Standard Underwriting Agreement") are herein incorporated by reference in their entirety and shall be deemed to be a part of this Underwriting Agreement to the same extent as if such provisions had been set forth in full herein. Capitalized terms used herein and not otherwise defined herein shall have the meanings given to them in the Standard Underwriting Agreement. Certificates for the Offered Securities purchased by each Underwriter shall be delivered by or on behalf of the Guarantor to the Representatives for the account of such Underwriter, against payment by such Underwriter or on its behalf of the Purchase Price therefor in federal (same day) funds, on the "Closing Date," which shall be 10:00 AM (New York City time) on December 7, 2001 at the offices of Simpson Thacher & Bartlett, 425 Lexington Avenue, New York, NY 10017, or at such other place and time as the Representatives, the Guarantor and the Trust may agree upon in writing. This document may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same document. Please confirm your agreement by having an authorized officer sign a copy of this Agreement in the space set forth below and returning the signed copy to us. MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED SALOMON SMITH BARNEY INC. U.S. BANCORP PIPER JAFFRAY INC. By: MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED By: /s/ John Esposito -------------------------------------------------- Name: John Esposito Title: Director By: SALOMON SMITH BARNEY INC. By: /s/ James Harasimowicz -------------------------------------------------- Name: James Harasimowicz Title: Managing Director Accepted by: U.S. BANCORP, as Guarantor By: /s/ Kenneth D. Nelson --------------------------------- Name: Kenneth D. Nelson Title: Senior Vice President USB CAPITAL V By: U.S. Bancorp, as Sponsor By: /s/ Kenneth D. Nelson --------------------------------- Name: Kenneth D. Nelson Title: Senior Vice President SCHEDULE I
Underwriters' Commitment ------------------------ Merrill Lynch, Pierce, Fenner & Smith Incorporated. ................................................................ 1,770,000 Salomon Smith Barney Inc........................................................ 1,770,000 U.S. Bancorp Piper Jaffray Inc. ................................................ 1,757,500 Banc of America Securities LLC.................................................. 1,757,500 Morgan Stanley & Co. Incorporated............................................... 1,757,500 UBS Warburg LLC................................................................. 1,757,500 Robert W. Baird & Co. Incorporated.............................................. 50,000 Bear, Stearns & Co. Inc. ....................................................... 50,000 CIBC World Markets Corp. ....................................................... 50,000 Credit Suisse First Boston Corporation.......................................... 50,000 Deutsche Bank Alex. Brown Inc. ................................................. 50,000 Lehman Brothers Inc. ........................................................... 50,000 J.P. Morgan Securities Inc. .................................................... 50,000 RBC Dain Rauscher Inc. ......................................................... 50,000 SWS Securities, Inc. ........................................................... 50,000 Stifel, Nicolaus & Company, Incorporated........................................ 50,000 Advest, Inc. ................................................................... 30,000 BB&T Capital Markets, A division of Scott and 30,000 Stringfellow, Inc. ........................................................... George K. Baum & Company........................................................ 30,000 C.L. King & Associates, Inc. ................................................... 30,000 Conners & Co., Inc. ............................................................ 30,000 Crowell, Weedon & Co. .......................................................... 30,000 D.A. Davidson & Co. ............................................................ 30,000 Davenport & Company LLC......................................................... 30,000 Fahnestock & Co. Inc. .......................................................... 30,000 Gibraltar Securities Co. ....................................................... 30,000 Gruntal & Co., L.L.C. .......................................................... 30,000 H&R Block Financial Advisors, Inc. ............................................. 30,000 HSBC Securities (USA) Inc. ..................................................... 30,000 Huntleigh Securities Corporation................................................ 30,000 J.J.B. Hilliard, W.L. Lyons, Inc. .............................................. 30,000 Janney Montgomery Scott LLC..................................................... 30,000 Legg Mason Wood Walker, Incorporated............................................ 30,000 McDonald Investments Inc. ...................................................... 30,000 Mesirow Financial, Inc. ........................................................ 30,000 Miller, Johnson & Kuehn......................................................... 30,000 Morgan Keegan & Company, Inc. .................................................. 30,000 Parker/Hunter Incorporated...................................................... 30,000 Quick & Reilly, Inc. ........................................................... 30,000 Raymond James & Associates, Inc. ............................................... 30,000 Charles Schwab & Co., Inc. ..................................................... 30,000 Smith, Moore & Co. ............................................................. 30,000 SunTrust Capital Markets, Inc. ................................................ 30,000 TD Waterhouse Investor Services, Inc. ......................................... 30,000 Tucker Anthony Incorporated.................................................... 30,000 Wedbush Morgan Securities...................................................... 30,000 William Blair & Company, L.L.C. ............................................... 30,000 TOTAL 12,000,000