Published on 10/3/2008 in the Prospect News Special Situations Daily.
New Issue: Merrill Lynch prices $83.1 million 0% Stars linked to S&P 500
By Jennifer Chiou
New York, Oct. 3 - Merrill Lynch & Co., Inc. priced $83.1 million of 0% Strategic Accelerated Redemption Securities due Oct. 5, 2010 linked to the S&P 500 index, according to a 424B3 filing with the Securities and Exchange Commission.
If the closing level of the index on any observation date is at least the initial level, the notes will be called and investors will receive par of $10 plus an annualized return of 15.95%. The observation dates are Oct. 5, 2009, April 6, 2010 and Sept. 28, 2010.
If the notes are not called early, the payout at maturity will be par minus 1% for each 1% that the index declines beyond 10%. The payout at maturity will not be more than par.
The company said it applied to list the notes on the NYSE Arca under the symbol "SFA."
Merrill Lynch & Co. and its affiliate First Republic Securities Co., LLC are the underwriters.
Issuer: | Merrill Lynch & Co., Inc.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500
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Amount: | $83.1 million
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Maturity: | Oct. 5, 2010
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par minus 1% for each 1% that the index declines beyond 10%; maximum of par
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Call: | On any observation date for par plus 15.95% per year if index closes at or above initial level; observation dates are Oct. 5, 2009, April 6, 2010 and Sept. 28, 2010
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Initial level: | 1,209.18
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Threshold level: | 1,088.26, 90% of initial level
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Pricing date: | Sept. 25
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Settlement date: | Oct. 3
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Underwriters: | Merrill Lynch & Co. and affiliate First Republic Securities Co., LLC
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Fees: | 2%
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