By Susanna Moon
Chicago, June 18 - Merrill Lynch & Co., Inc. priced $38.95 million of 12.1% STEP Income Securities due June 25, 2009 linked to the common stock of Apple Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price is greater than or equal to the step level -112.1% of the initial share price - the payout at maturity will be par of $10 plus 5%.
If Apple shares finish below the step level but at or above the threshold level - 90% of the initial share price - the payout will be par. Investors will lose 1% for every 1% that the final share price is below the threshold level.
The notes have been approved for listing on the American Stock Exchange under the symbol "AXD."
Merrill Lynch & Co. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Merrill Lynch & Co., Inc.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $38.95 million
|
| Maturity: | June 25, 2009
|
| Coupon: | 12.1%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus 5% if final share price is at least the step level; par if the final share price is below the step level and at least 90% of the initial level; 1% loss for each 1% drop beyond threshold level
|
| Initial share price: | $182.2017
|
| STEP level: | $204.2481, or 112.1% of initial price
|
| Threshold level: | $163.1895, or 90% of initial price
|
| Pricing date: | June 11
|
| Settlement date: | June 18
|
| Underwriters: | Merrill Lynch & Co. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
| Listing: | Amex: AXD
|
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