By Angela McDaniels
Tacoma, Wash., July 8 - Barclays Bank plc priced $49.93 million of 10% STEP Income Securities due July 20, 2012 linked to the common stock of Goodyear Tire & Rubber Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Goodyear stock is greater than or equal to the step level - 110% of the initial share price - the payout at maturity will be par of $10 plus 4.57%.
If the final share price is greater than or equal to 95% of the initial share price but is less than the step level, the payout will be par.
Investors will lose 1% for every 1% that the share price declines beyond 5%.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Goodyear Tire & Rubber Co. (NYSE: GT)
|
| Amount: | $49,928,890
|
| Maturity: | July 20, 2012
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 4.57% if final share price is greater than or equal to step level; par if final share price is less than step level but greater than or equal to 95% of initial share price; 1% loss for every 1% that share price declines beyond 5%
|
| Initial share price: | $17.74, equal to volume-weighted average price on pricing date
|
| Step level: | $19.51, 110% of initial share price
|
| Pricing date: | July 6
|
| Settlement date: | July 12
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06741K270
|
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