Published on 3/18/2010 in the Prospect News Structured Products Daily.
New Issue: BofA prices $32.78 million 10% STEP Income Securities linked to Freeport-McMoRan
By Jennifer Chiou
New York, Feb. 25 - Bank of America Corp. priced $32.78 million of 10% STEP Income Securities due April 1, 2011 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price of Freeport-McMoRan stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus 2.71%. The step level is 110% of the initial share price.
If the final share price is greater than or equal to the threshold level but less than the step level, the payout will be par. The threshold level is 95% of the initial share price.
If the final share price is less than the threshold share price, investors will be exposed any decline beyond 5%.
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: | Freeport-McMoRan Copper & Gold Inc. (Symbol: FCX)
|
| Amount: | $32,780,620
|
| Maturity: | April 1, 2011
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to step level, par plus 2.71%; if final share price is greater than or equal to the threshold level but less than step level, par; if final share price is less than threshold price, par minus the decline, with a floor of 5%
|
| Initial share price: | $81.95
|
| Step level: | $90.15, 110% of initial price
|
| Threshold level: | $77.85, 95% of initial price
|
| Pricing date: | March 16
|
| Settlement date: | March 23
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
| Cusip: | 06052H494
|
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