According to the New York Fed, the transaction was prompted by an unsolicited offer from Goldman Sachs & Co. to BlackRock Solutions, the investment manager for ML II to buy a portion of ML II assets. The New York Fed directed BlackRock Solutions to conduct a sale via a competitive process. The four broker-dealers included in the competitive process were Barclays Capital Inc., Credit Suisse, Goldman Sachs & Co. and Merrill Lynch, Pierce, Fenner & Smith Inc., with Credit Suisse scoring the winning bid.
‘I am pleased with the strength of the bids and the level of market interest in these assets,’ says William C. Dudley, president of the New York Fed.
Net proceeds from the sale will be reported as part of the portfolio's normal reporting schedule on April 16.
The New York Fed, through BlackRock Solutions, will dispose of the remaining securities in the ML II portfolio individually and in segments over time as market conditions warrant through a competitive sales process, while taking appropriate care to avoid market disruption. There will be no fixed time frame for the sales, according to the New York Fed.