By Toni Weeks
San Diego, May 2 - Bank of America Corp. priced 12.5% STEP Income Securities due May 11, 2012 linked to the performance of Seagate Technology plc shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the price of Seagate shares finishes at or above the step level - 112.5% of the initial price - the payout at maturity will be par of $10 plus 6.03%.
If the stock finishes at or above the initial price but below the step level, the payout will be par.
Investors will be exposed to any losses.
Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Seagate Technology plc (Symbol: STX)
|
| Amount: | $27,355,760
|
| Maturity: | May 11, 2012
|
| Coupon: | 12.5%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If Seagate shares finish at or above $19.88, par plus $0.603 per $10 note; if shares finish at or above initial price but below step level, par; full exposure to losses
|
| Initial price: | $17.67
|
| Step level: | $19.88, 112.5% of initial value
|
| Pricing date: | April 28
|
| Settlement date: | May 5
|
| Agent: | Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06050R494
|
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