Published on 3/27/2009 in the Prospect News Structured Products Daily.
New Issue: Merrill Lynch prices $5.91 million Bear Market Stars linked to S&P 500 for Eksportfinans
By Susanna Moon
Chicago, March 27 - Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC priced $5.91 million of 0% Bear Market Strategic Accelerated Redemption Securities due Sept. 30, 2010 linked to the S&P 500 index for issuer Eksportfinans ASA, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or below the initial index level on any of three observation dates, the notes will be automatically called at par of $10 plus an annualized premium of 15.8%. The observation dates are Sept. 23, 2009, March 26, 2010 and Sept. 23, 2010.
If the notes are not called, the payout at maturity will be par unless the index gains by more than 10%, in which case investors will lose 1% for every 1% gain beyond 10%.
Issuer: | Eksportfinans ASA
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Issue: | Bear Market Strategic Accelerated Redemption Securities
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Underlying index: | S&P 500 index
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Amount: | $5.91 million
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Maturity: | Sept. 30, 2010
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | Par if index finishes below 110% of initial level; otherwise, 1% loss for every 1% gain beyond 10%
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Call: | Automatically if index closes at or below initial index level on an observation date; at $10.79 if called on Sept. 23, 2009, $11.58 on March 26, 2010 and $12.37 on Sept. 23, 2010
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Initial index level: | 813.88
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Trigger level: | 895.27, or 110% of initial level
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Pricing date: | March 25
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Settlement date: | April 1
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Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
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Fees: | 1.5%
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