Published on 8/2/2010 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $54.88 million Stars linked to S&P 500 via Merrill
By Jennifer Chiou
New York, Aug. 2 - Bank of America Corp. priced $54.88 million of 0% Strategic Accelerated Redemption Securities due Aug. 10, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized premium of 11.75% if the index closes at or above its initial level on any of the observation dates, which will fall on Jan. 25, 2011, April 26, 2011 and Aug. 2, 2011.
If the notes are not called, investors will receive par for losses up to 5% and will be exposed to any index decline beyond the threshold percentage.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying index: | S&P 500
|
| Amount: | $54,878,680
|
| Maturity: | Aug. 10, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | At 11.75% premium if index closes at or above initial level on any of three observation dates
|
| Payout at maturity: | Par for losses up to 5%; exposure to losses beyond threshold
|
| Initial index level: | 1,101.53
|
| Threshold level: | 1,046.45, 95% of initial level
|
| Pricing date: | July 29
|
| Settlement date: | Aug. 9
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC
|
| Fees: | 1.25%
|
| Cusip: | 06052K372
|
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