Published on 11/1/2010 in the Prospect News Structured Products Daily.
New Issue: Bank of America sells $26.83 million capped leveraged notes due 2012 linked to gold
By Susanna Moon
Chicago, Nov. 1 - Bank of America Corp priced $26.83 million of 0% Capped Leveraged Index Return Notes due Nov. 1, 2012 based on the spot price of gold, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10.00 plus double any gain in the price of gold, up to a cap of $12.27 per note.
Investors will receive par if the price of gold falls by up to 10% and will be exposed to any decline beyond 10%.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the underwriter.
Issuer: | Bank of America Corp
|
Issue: | Capped Leveraged Index Return Notes
|
Underlying commodity: | Gold
|
Amount: | $26,834,850
|
Maturity: | Nov. 1, 2012
|
Coupon: | 0%
|
Price: | Par of $10
|
Payout at maturity: | Par plus 200% of any gain in gold price, capped at 22.7%; exposure to losses beyond 10%
|
Initial level: | $1,333.50
|
Threshold level: | $1,200.15, or 90% of initial level
|
Pricing date: | Oct. 28
|
Settlement date: | Nov. 4
|
Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
Fees: | 2%
|
Cusip: | 06052R161
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.