Published on 5/31/2011 in the Prospect News Structured Products Daily.
New Issue: BofA prices $4.39 million Relative Value Stars linked to SPDR S&P 500, Treasury fund
By Jennifer Chiou
New York, May 31 - Bank of America Corp. priced $4.39 million of 0% Relative Value Strategic Accelerated Redemption Securities due June 5, 2012 linked to the performance of the SPDR S&P 500 ETF Trust versus the iShares Barclays 20+ Year Treasury Bond Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium of 11% per year if the performance of the SPDR S&P 500 ETF Trust meets or exceeds the performance of the iShares Barclays 20+ Year Treasury Bond Fund on Nov. 21, Feb. 21, 2012 or May 29, 2012.
If the notes are not called, the payout at maturity will be par plus the return of the equity trust minus the return of the Treasury fund. Because the last call observation date is also the final valuation date, if the notes are not called, the return of the equity trust will be less than the return of the Treasury fund and investors will lose principal at maturity.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Relative Value Strategic Accelerated Redemption Securities
|
| Underlying funds: | SPDR S&P 500 ETF Trust, iShares Barclays 20+ Year Treasury Bond Fund
|
| Amount: | $4,385,160
|
| Maturity: | June 5, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus equity trust return minus Treasury fund return
|
| Call: | At par plus 11% per year if performance of equity trust meets or exceeds performance of Treasury fund on Nov. 21, Feb. 21, 2012 or May 29, 2012
|
| Initial prices: | $133.01 for equity trust; $96.51 for Treasury fund
|
| Pricing date: | May 26
|
| Settlement date: | June 3
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.25%
|
| Cusip: | 06050R577
|
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