Published on 5/31/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $23.9 million capped leveraged index return notes on 17 stocks
By Jennifer Chiou
New York, May 31 - Bank of America Corp. priced $23.9 million of capped leveraged index return notes due June 4, 2013 linked to a basket of common stocks in the technology and industrial sectors, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Apple Inc., Boeing Co., Cisco Systems, Inc., Deere & Co., Dell Inc., Danaher Corp., Emerson Electric Co., Honeywell International, Inc., Hewlett-Packard Co., International Business Machines Corp., Illinois Tool Works Inc., Juniper Networks, Inc., Microsoft Corp., Oracle Corp., Qualcomm, Inc., Texas Instruments Inc. and United Technologies Corp.
The payout at maturity will be par of $10 plus double any increase in the basket, subject to a cap of 25%.
Investors will receive par if the basket declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Capped leveraged index return notes
|
| Underlying stocks: | Equal weights of Apple Inc., Boeing Co., Cisco Systems, Inc., Deere & Co., Dell Inc., Danaher Corp., Emerson Electric Co., Honeywell International, Inc., Hewlett-Packard Co., International Business Machines Corp., Illinois Tool Works Inc., Juniper Networks, Inc., Microsoft Corp., Oracle Corp., Qualcomm, Inc., Texas Instruments Inc. and United Technologies Corp.
|
| Amount: | $23,903,810
|
| Maturity: | June 4, 2013
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par of $10 plus 200% of any gain, capped at 25%; par if basket falls up to 5%, with exposure to losses beyond 5%
|
| Pricing date: | May 26
|
| Settlement date: | June 3
|
| Agents: | Bank of America Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06050R593
|
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