By Jennifer Chiou
New York, April 2 - Bank of America Corp. priced $121,134,850 of 10% STEP Income Securities due April 12, 2013 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 - 110% of the initial price - the payout at maturity will be par of $10 plus a step payment of 4.51%.
If the final share price is greater than or equal to the initial price but is less than the step level, the payout will be par.
Investors will share in any losses.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Ford Motor Co. (Symbol: F)
|
| Amount: | $121,134,850
|
| Maturity: | April 12, 2013
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If price of Ford stock finishes at or above 110% of initial price, par plus 4.51%; if stock finishes at or above initial price but below step level, par; full exposure to losses below the initial price
|
| Initial price: | $12.36
|
| Step level: | $13.60, 110% of initial price
|
| Pricing date: | March 29
|
| Settlement date: | April 5
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06051P810
|
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