By Jennifer Chiou
New York, May 17 - Bank of America Corp. priced $33.61 million of 10% STEP Income Securities due May 27, 2011 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price of United States Steel stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 12.05%. The step level is 110% of the initial share price.
If the final share price is greater than or equal to the threshold price, which is 92.5% of the initial share price, but less than the step level, the payout will be par.
Investors will share in any losses with up to 92.5% of the principal at risk.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | United States Steel Corp. (Symbol: X)
|
| Amount: | $33,609,300
|
| Maturity: | May 27, 2011
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than initial share price or equal to step level, par plus 12.05%; if final share price is greater than or equal to the threshold level but less than step level, par; exposure to up to 92.5% of losses
|
| Initial share price: | $56.87
|
| Step level: | $62.56, 110% of initial price
|
| Pricing date: | May 13
|
| Settlement date: | May 20
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
| Cusip: | 06052H833
|
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