From: Jeffrey E. [mailto:[email protected] <mailto:[email protected]> Sent: Monday, August 08, 2016 4:14 PM To: Ens, Amanda Subject: Re: Preferreds, thoughts on fixed income, mandatory converts send more detail of the bond On Mon, Aug 8, 2016 at 2:26 PM, Ens, Amanda <[email protected] <mailto:amanda.ens@bamIcom» wrote: Jeffrey, I continue to like the AGN, TEVA and FTR mandatory convert preferreds. While AGN missed on sales today, is was mostly due to noise around the last minute divestiture of their ANDA distribution business to TEVA. While the generics sale to TEVA was already built into most analyst models, the ANDA sale was not. Revenue thus looks in line. Botox and Restasis, two important products, are still growing at 16% and 21% respectively. AGN has an aggressive buyback program, targeting $5bn this year and they should reach the full $10bn approved by next year, market conditions permitting. Their pipeline looks strong; execution will be key going forward. There has been chatter in the market about them potentially doing a big deal such as BIIB but management said on the call that they're focused on being selective/disciplined and will likely target smaller stepping stone opportunities. Outside of buybacks, the company has about $20bn of dry powder to invest for growth over the next 12-18 months, which could come in the form of acquisitions and/or debt repayment. Long story short: would look to build a position through the AGN A mandatory convert preferred at a 6.3% current yield to March 2018. Let me know if you have time for a call; I'm at Thanks, Amanda Amanda Ens Director Bank of America Merrill Lynch Merrill Lynch, Pierce, Fenner & Smith Incorporated One Bryant Park, 5th Floor, New York, NY 10036 9 EFTA_R1_00107688 EFTA01785507