By Marisa Wong
Madison, Wis., Jan. 6 - Bank of America Corp. priced $29.22 million of 9% STEP Income Securities due Jan. 18, 2013 linked to Microsoft Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Microsoft shares finishes at or above the step level - 109% of the initial price - the payout at maturity will be par of $10 plus a step payment of 5.87%.
If the stock finishes at or above the initial price but below the step level, the payout will be par.
Investors will be exposed to losses.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Microsoft Corp. (Nasdaq: MSFT)
|
| Amount: | $29,215,610
|
| Maturity: | Jan. 18, 2013
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If price of Microsoft stock finishes at or above 109% of initial price, par plus 5.87%; if stock finishes at or above initial price but below step level, par; full exposure to losses
|
| Initial price: | $27.22
|
| Step level: | $29.67, 109% of initial price
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 11
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06051P349
|
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