By Marisa Wong
Madison, Wis., Nov. 17 - Bank of America Corp. priced $19.84 million of 11% STEP Income Securities due Nov. 28, 2012 linked to Ford Motor Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Ford shares finishes at or above the step level - 111% of the initial price - the payout at maturity will be par of $10 plus a step payment of 11.43%.
If the stock finishes at or above 95% of the initial price but below the step level, the payout will be par.
Investors will be exposed to losses beyond the 5% buffer.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Ford Motor Co.
|
| Amount: | $19,843,610
|
| Maturity: | Nov. 28, 2012
|
| Coupon: | 11%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at or above step level, par plus 11.43%; if stock finishes at or above threshold level, par; exposure to losses beyond 5%
|
| Initial price: | $10.92
|
| Step level: | $12.12, 111% of initial price
|
| Threshold level: | $10.37, 95% of initial price
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 22
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06051N781
|
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