No. of Recommendations: 3
Each of the issues being offered the exchange is a slightly different situation, in my case for Q series, there is a significant premium over the market price.

In your case, the PF mature in 2012.

You need to decide if you think BAC will not default on these issues.

You need to decide if the risk that BAC will default is significant and if it is a good option to take $.75 on the dollar today or wait for your full $1.00 in 2012 and collect the interest along the way.

You need to think about the fact that the $18.75 is not in case but is in BAC common and that the BAC common could drastically decrease in value due to dilution, drastically increase in value due to giddyness over BAC's reduced debt load and the possibility of improved operating expense going forward, and of course the possibility that BAC will not change drastically one way or the other.

Prior to the offer, I owned 40 shares of BML-Q. I plan on holding that and continuing to receive dividends. I also picked up another 50 shares as a play on the tender offer and will either tender or sell those in the short term.

It isn't an easy decision, but If you cannot come to terms with a real reason to let go of you shares, I would forget you ever got the tender. If you bought these PFs with the plan to hold them to maturity and receive an ample dividend along the way, there is nothing material in the tender to change that.... unless you think that for one of the reasons listed above the situation has changed and you prefer to cash out.

There is no easy answer, you just need to think it through and be comfortable with your decision. The decision to not tender is very similar to the decision you made to buy these in the first place, unless something material has changed and only you can decide that.

Best of luck.

Scott
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