By Marisa Wong
Madison, Wis., July 2 - Bank of America Corp. priced $16.21 million of 11% STEP Income Securities due July 8, 2013 linked to Goodyear Tire & Rubber Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Goodyear stock finishes at or above the step level - 111% of the initial price - the payout at maturity will be par of $10 plus a step payment of 6.51%.
If the stock finishes at or above the threshold value - 90% of the initial price - the payout will be par.
Investors will lose 1% for every 1% decline beyond 10%.
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: | $16,209,340
|
| Maturity: | July 8, 2013
|
| Coupon: | 11%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If price of Goodyear stock finishes at or above step level, par plus 6.51%; if stock finishes at or above threshold price, par; full exposure to declines beyond 10%
|
| Initial price: | $11.51
|
| Step level: | $12.78, 111% of initial price
|
| Threshold value: | $10.36, 90% of initial price
|
| Pricing date: | June 28
|
| Settlement date: | July 6
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06051R444
|
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