Published on 4/14/2011 in the Prospect News Structured Products Daily.
New Issue: Merrill Lynch prices $69.81 million 9.25% STEP Income notes tied to Ford for Svensk
By Marisa Wong
Madison, Wis., April 14 - AB Svensk Exportkredit priced $69.81 million of 9.25% STEP Income Securities due April 27, 2012 linked to the common stock of Ford Motor Co. via Merrill Lynch, Pierce, Fenner & Smith Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the stock finishes at or above the step level, the payout at maturity will be par of $10 plus 4.78%. The step level is 109.25% of the initial share price.
If the stock finishes at or above the initial share price but below the step level, the payout will be par.
Investors will be exposed to any decline in the share price.
Issuer: | AB Svensk Exportkredit
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Issue: | STEP Income Securities
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Underlying stock: | Ford Motor Co. (NYSE: F)
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Amount: | $69,809,300
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Maturity: | April 27, 2012
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Coupon: | 9.25%, payable quarterly
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Price: | Par of $10.00
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Payout at maturity: | If final share price is greater than or equal to step level, par plus 4.78%; if final share price is greater than or equal to initial share price but less than step level, par; otherwise, full exposure to share price decline
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Initial share price: | $14.79, equal to volume-weighted average price of Ford stock on pricing date
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Step level: | $16.16, 109.25% of initial share price
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Pricing date: | April 12
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Settlement date: | April 19
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Underwriter: | Merrill Lynch, Pierce, Fenner & Smith Inc.
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Fees: | 1.75%
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Cusip: | 01019A500
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