By Angela McDaniels
Tacoma, Wash., Feb. 22 - Bank of America Corp. priced $35.35 million of 10% reverse mandatory exchangeable senior notes with partial principal protection and partial upside due Feb. 24, 2011 linked to the common stock of Schlumberger Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes priced at par of $65.418, which is equal to the price of Schlumberger stock on the pricing date, and were issued in minimum denominations of $250,027.60.
Interest is payable monthly.
If the final share price of Schlumberger stock is less than the lower strike price - 112% of the initial share price - the payout at maturity will be par minus 89.29% of the difference between the final share price and the lower strike price, subject to a floor of $46.73.
If the final share price is greater than or equal to the lower strike price but less than the upper strike price - 122.3% of the initial share price - the payout will be par.
Otherwise, the payout will be par plus 65% of the increase in the final share price beyond the upper strike price.
Investors can choose to receive the payout in Schlumberger shares instead of cash.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Reverse mandatory exchangeable senior notes with partial principal protection and partial upside
|
| Underlying stock: | Schlumberger Ltd. (Symbol: SLB)
|
| Amount: | $31,350,006.47
|
| Maturity: | Feb. 24, 2011
|
| Coupon: | 10%, payable monthly
|
| Price: | Par of $65.418
|
| Payout at maturity: | Par minus 89.29% of difference between final share price and lower strike price if final share price is less than lower strike price, subject to floor of $46.73; par if final share price is greater than or equal to lower strike price but less than upper strike price; par plus 65% of any increase in final share price beyond upper strike price
|
| Initial share price: | $65.418
|
| Lower strike price: | $73.27, 112% of initial price
|
| Upper strike price: | $80.01, 122.3% of initial price
|
| Pricing date: | Feb. 18
|
| Settlement date: | Feb. 25
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | None
|
| Cusip: | 06052H346
|
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