Bank of America Merrill L=nch Merrill Lynch, Pierce, Fe=ner & Smith Incorporated One Bryant Park, 5th Floo=, New York, NY 10036 The power of global conne=tions'" From: Jeffrey =. (mailto:[email protected] <mailto:[email protected]> I Sent: Monday, August 08, 2016 4:59 PM To: Ens, Amanda; Richard Kahn Subject: Re: Preferreds, thoughts on fixed income, mandatory convert= lets buy 1 m each On Mon, Aug 8, 2016 at 4:55 PM, Ens, Amanda < For the institutional cus=ody account I'm opening for you in the investment bank here, no le=erage yet. We would need to set up prime brokerage and we're not there y=t. If you plan to use a lot of leverage, I can try to get an exception; pr=me brokerage usually requires pretty high trading volumes. If we can simpl= execute the purchase and deliver these to your custody at MS or DB and use their margin, it should be the standar= 50% for purpose lending; perhaps higher if you have a non-purpose line. N=te that since mando convert preferreds are highly correlated to the stock,=the vol is much higher than on a bank preferred. The AGN A Pfd is has a 19% 30-day vol (vs 24% for the co=mon stock) and 30% 90-day vol (vs 41% for the common stock). For compariso=, PFF had a 4.5-5% vol. <1=> From: Jeffrey =. (mailto:[email protected] <mailto:[email protected]> I Sent: Monday, August 08, 2016 4:40 PM To: Ens, Amanda Subject: Re: Preferreds, thoughts on fixed income, mandatory convert= 5 EFTA_R1_01556373 EFTA02454564

can we put leverage on them, if so what rate<=> On Mon, Aug 8, 2016 at 4:30 PM, Ens, Amanda AGN mandatory convert pre=erred Ticker: AGN A Pfd<=> Coupon: 5.5% Maturity: 3/1/2018=u> Pfd Price: 881.38<=> AGN stock ref: 248.31 Convert low strike: 288.0= (at maturity, if AGN is at or below 288, you get 3.4722 shares)=/u> Convert high strike: 352.=0 (at maturity, if AGN is at or above 352.7959, you get 2.8345 shares) Strip yield: 6.3% (versus=common stock which pays no dividend) BofAML price target: $294=(Buy, US-1 top picks list) Upside to BofAML price ta=get: 18.4% If hold pref to maturity =nd stock is up 25%: 24.4% If hold pref to maturity =nd stock is down 25%: -15.7% QDI-eligible: No Amount outstanding: $5.06=bn </=> </=> TEVA mandatory convert pr=ferred Ticker: TEWF Pfd<=> Coupon: 7.0% Maturity: 12/15/2018 Pfd Price: 895.07<=> 6 EFTA_R1_01556374 EFTA02454565

TEVA stock ref: 54.21 Convert low strike: 62.50=/span> Convert high strike: 75.0= Strip yield: 7.9% (vs com=on stock at 2.5% div yield) BofAML price target: $72.=0 (Buy) Upside to BofAML price ta=get: 32.8% If hold pref to maturity =nd stock is up 25%: 31.3% If hold pref to maturity =nd stock is down 25%: -7.8% QDI-eligible: No Amount outstanding: $3.71=5 bn </=> Assumes convert held t= maturity; all coupons included </=> Source: Bloomberg<=> </=> Amanda Ens<=> Director Bank of America Merrill L=nch Merrill Lynch, Pierce, Fe=ner & Smith Incorporated One Bryant Park, 5th Floo=, New York, NY 10036 </=> The power of global conne=tions' 7 EFTA_R1_01556375 EFTA02454566