By E. Janene Geiss
Philadelphia, Nov. 7 - Merrill Lynch & Co., Inc. priced $81.9 million of 0% Strategic Accelerated Redemption Securities due Nov. 2, 2010 linked to the S&P 500 index, according to a 424B3 filing with the Securities and Exchange Commission.
The notes will be called at a premium of 24.1% per year if the closing level of the index is greater than its starting value on any of three observation dates.
For each $10.00 note, the call amount is $12.41 if called on Nov. 12, 2009, $13.615 if called on May 12, 2010 and $14.82 if called on Oct. 26, 2010.
If the notes are not called, the payout at maturity will be par if the final index level is at least 90% of the initial level. Otherwise, investors will lose 1% for each 1% decline beyond 10%.
The securities will be listed on the American Stock Exchange under the symbol "SFO."
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Merrill Lynch & Co., Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying index: | S&P 500
|
| Amount: | $81.9 million
|
| Maturity: | Nov. 2, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par for losses up to 10%; share in losses beyond 10%
|
| Call: | If the closing level of the index is greater than its starting value on any of three observation dates; call amount is $12.41 if called on Nov.12, 2009, $13.615 if called on May 12, 2010 and $14.82 if called on Oct. 26, 2010
|
| Initial index level: | 954.09
|
| Threshold level: | 858.68, or 90% of initial level
|
| Pricing date: | Oct. 30
|
| Settlement date: | Nov. 10
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 2%
|
| Listing: | NYSE Arca: "SFO"
|
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