From: Ens, Amanda < Sent: Monday, August 15, 2016 1:51 PM To: jeffrey E.; Richard Kahn Subject: RE: Preferreds, thoughts on fixed income, mandatory converts Thanks Jeffrey From: jeffrey E. [mailto:[email protected]] Sent: Monday, August 15, 2016 9:48 AM To: Ens, Amanda; Richard Kahn Subject: Re: Preferreds, thoughts on fixed income, mandatory converts 1 million each of AGN and TEVA On Mon, Aug 15, 2016 at 7:34 AM, Ens, Amanda < <mailto » wrote: Jeffrey, The account will be open today. Please find updated levels below; would you like to proceed with the purchases? AGN 5.5% 3/1/18 Pfd @ $882.00 (6.2% strip yield) TEVA 7.0% 12/15/18 Pfd @ $901.75 (7.9% strip yield) FTR 11.125% 6/29/18 Pfd @ $94.80 (12.0% strip yield) AGN mandatory convert preferred Ticker: AGN A Pfd Coupon: 5.5% Maturity: 3/1/2018 Pfd Price: 882.00 EFTA_R1_01556628 EFTA02454699

AGN stock ref: 251.50 Convert low strike: 288.00 (at maturity, if AGN is at or below 288, you get 3.4722 shares) Convert high strike: 352.80 (at maturity, if AGN is at or above 352.7959, you get 2.8345 shares) Strip yield: 6.2% (versus common stock which pays no dividend) BofAML price target: $294 (Buy, US-1 top picks list) Upside to BofAML price target: 16.9% If hold pref to maturity and stock is up 25%: 22.3% If hold pref to maturity and stock is down 25%: -16.2% QDI-eligible: No Amount outstanding: $5.06 bn TEVA mandatory convert preferred Ticker: TEVVF Pfd Coupon: 7.0% Maturity: 12/15/2018 Pfd Price: 901.75 TEVA stock ref: 54.14 Convert low strike: 62.50 Convert high strike: 75.00 Strip yield: 7.9% (vs common stock at 2.5% div yield) BofAML price target: $72.00 (Buy) Upside to BofAML price target: 33.0% If hold pref to maturity and stock is up 25%: 30.3% If hold pref to maturity and stock is down 25%: -8.5% QDI-eligible: No Amount outstanding: $3.7125 bn 2 EFTA_R1_01556629 EFTA02454700

FTR mandatory convert preferred details Ticker: FTRPR Pfd Coupon: 7.0% Maturity: 12/15/2018 PM Price: 94.80 FIR stock ref: 4.90 Convert low strike: 5.00 Convert high strike: 5.875 Strip yield: 12.0% (vs common stock at 8.6% div yield) BofAML price target: $7.50 (buy) Upside to BofAML price target: 53.4% If hold pref to maturity and stock is up 25%: 33.5% If hold pref to maturity and stock is down 25%: 1.1% QDI-eligible: No Amount outstanding: $1.925bn Assumes convert held to maturity; all coupons included Source: Bloomberg Thanks, Amanda From: Ens, Amanda Sent: Tuesday, August 09, 2016 10:00 AM To: 'jeffrey E.'; 'Richard Kahn' Subject: RE: Preferreds, thoughts on fixed income, mandatory converts 3 EFTA_R1_01556630 EFTA02454701

Jeffrey, Updated levels: AGN 5.5% 3/1/18 Pfd $895.50 (6.2% strip yield) TEVA 7.0% 12/15/18 Pfd $894.00 (7.9% strip yield) FTR 11.125% 6/29/18 Pfd $95.15 (11.9% strip yield) We could trade today if we can deliver into your account at MS or DB. If you'd prefer custody at BAML, the institutional custody account is not open yet so we likely need to wait until next week. Sorry for the inconvenience. Please let me know what you prefer. FTR mandatory convert preferred details Ticker: FTRPR Pfd Coupon: 7.0% Maturity: 12/15/2018 Pfd Price: 95.15 FTR stock ref: 4.90 Convert low strike: 5.00 Convert high strike: 5.875 Strip yield: 11.9% (vs common stock at 8.6% div yield) BofAML price target: $7.50 (buy) Upside to BofAML price target: 53% If hold pref to maturity and stock is up 25%: 33.0% If hold pref to maturity and stock is down 25%: 0.6% Q0I-eligible: No Amount outstanding: $1.925bn 4 EFTA_R1_01556631 EFTA02454702