Published on 8/1/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $20.19 million Stars linked to iShares MSCI ETFs
By Jennifer Chiou
New York, Aug. 1 - Bank of America Corp. priced $20.19 million of 0% Strategic Accelerated Redemption Securities due Aug. 6, 2012 linked to an equally weighted basket that includes the iShares MSCI EAFE index fund and the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium of 11.7% per year if the basket closes at or above the initial basket level on Jan. 24, 2012, April 24, 2012 or July 30, 2012.
If the notes are not called and the final basket level is at least 95% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the basket level declines beyond 5%.
Issuer: | Bank of America Corp.
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Issue: | Strategic Accelerated Redemption Securities
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Underlying ETFs: iShares MSCI EAFE index fund and iShares MSCI Emerging Markets index fund, equally weighted
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Amount: | $20,188,670
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Maturity: | Aug. 6, 2012
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | Par if final basket level has declined from initial level by no more than 5%; 1% loss for every 1% decline beyond 5%
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Call: | Automatically at par plus 11.7% per year if basket closes at or above initial level on Jan. 24, 2012, April 24, 2012 or July 30, 2012
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Initial prices: | $58.56 for EAFE fund and $46.91 for Emerging Markets fund
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Pricing date: | July 28
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Settlement date: | Aug. 4
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Underwriter: | Bank of America Merrill Lynch
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Fees: | 1.25%
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Cusip: | 06050N187
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