By Angela McDaniels
Tacoma, Wash., May 16 - Bank of America Corp. priced $55.24 million of 8.5% STEP Income Securities due May 25, 2012 linked to the common stock of Schlumberger Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final price of Schlumberger stock is greater than or equal to the step level - 108.5% of the initial share price - the payout at maturity will be par of $10 plus 6.47%.
If the final share price is greater than or equal to the initial share price but is less than the step level, the payout will be par.
If the final share price is less than the initial share price, investors will be exposed to the decline.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Schlumberger Ltd. (NYSE: SLB)
|
| Amount: | $55,236,060
|
| Maturity: | May 25, 2012
|
| Coupon: | 8.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par plus 6.47% 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 initial share price; exposure to any share price decline
|
| Initial price: | $83.05
|
| Step level: | $90.11, 108.5% of initial value
|
| Pricing date: | May 12
|
| Settlement date: | May 19
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06050R502
|
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