By Jennifer Chiou
New York, April 2 - Bank of America Corp. priced $20,031,680 of 7.5% STEP Income Securities due April 12, 2013 linked to International Paper Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of International Paper shares finishes at or above the step level - 107.5% of the initial price - the payout at maturity will be par of $10 plus a step payment of 5.16%.
If the final share price is greater than or equal to the threshold value but is less than the step level, the payout will be par. The threshold value is 95% of the initial share price.
Investors will lose 1% for every 1% that the final price declines below the threshold value.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | International Paper Co. (Symbol: IP)
|
| Amount: | $20,031,680
|
| Maturity: | April 12, 2013
|
| Coupon: | 7.5%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If price of International Paper stock finishes at or above 107.5% of initial price, par plus 5.16%; if stock finishes at or above threshold value but below step level, par; full exposure to losses below the threshold value
|
| Initial price: | $34.91
|
| Step level: | $37.53, 107.5% of initial price
|
| Threshold value: | $33.16, 95% of initial price
|
| Pricing date: | March 29
|
| Settlement date: | April 5
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06051P828
|
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