By Jennifer Chiou
New York, Feb. 15 - Bank of America priced a $100 million issue of 0.25% optionally exchangeable senior notes due Feb. 15, 2012 linked to a basket of stocks, according to a 424B5 filing with the Securities and Exchange Commission.
The basket includes equal weights of The Coca-Cola Co., Coach, Inc. and Franklin Resources, Inc.
The initial prices of the stocks are $48.0993 for Coca-Cola with a 6.63301 exchange ratio, $46.9431 for Coach with a 6.79434 exchange ratio and $122.1976 for Franklin Resources with a 2.61010 exchange ratio.
The initial basket level is the sum of the initial stock prices multiplied by their exchange ratios, or $956.9385, which is $43.0615 less than par. Accordingly, the initial premium is 4.5%.
The notes are callable beginning Feb. 15, 2009 at the greater of par and the basket level.
If the notes are not called, the payout at maturity will be the greater of par and the basket level on Feb. 8, 2012. At Bank of America's option, noteholders may receive a number of shares of each stock equal to the exchange ratio in lieu of a cash payment equal to the average basket level.
| Issuer: | Bank of America
|
| Issue: | Optionally exchangeable senior notes
|
| Underlying stocks: | The Coca-Cola Co., Coach, Inc., Franklin Resources, Inc., equally weighted
|
| Amount: | $100 million
|
| Maturity: | Feb. 15, 2012
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| Coupon: | 0.25%, payable semiannually
|
| Price: | Par
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| Payout at maturity: | Greater of par and the basket level or, at the issuer's option, a number of shares of each stock equal to the exchange ratio
|
| Call: | Feb. 15, 2009 onwards at the greater of par or the basket level
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| Initial share prices: | The Coca-Cola Co. at $48.0993, Coach, Inc. at $46.9431, Franklin Resources, Inc. at $122.1976
|
| Pricing date: | Feb. 12
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| Settlement date: | Feb. 15
|
| Agent: | Banc of America Securities LLC
|
| Agent fees: | None
|
| Listing: | "BOR.V" on the American Stock Exchange
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