By Angela McDaniels
Tacoma, Wash., March 29 - Bank of America Corp. priced $79.54 million of 9% STEP Income Securities due April 8, 2011 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price of Ford stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 7.67%. The step level is 109% of the initial share price.
If the final share price is greater than or equal to the threshold value but less than the step level, the payout will be par. The threshold value is 95% of the initial share price.
Investors will be exposed to any decline below the threshold value.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $79,542,020
|
| Maturity: | April 8, 2011
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to step level, par plus 7.67%; if final share price is greater than or equal to threshold value but less than step level, par; par minus any decline below threshold value
|
| Initial share price: | $13.96
|
| Step level: | $15.22, 109% of initial price
|
| Threshold value: | $13.26, 95% of initial price
|
| Pricing date: | March 25
|
| Settlement date: | April 5
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
| Cusip: | 06052H528
|
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