Published on 9/25/2009 in the Prospect News Structured Products Daily.
New Issue: Bank of America sells $13.51 million Bear Market Stars linked to S&P 500
By E. Janene Geiss
Philadelphia, Sept. 25 - Bank of America priced $13.51 million of 0% Bear Market Strategic Accelerated Redemption Securities due April 5, 2011 linked to the S&P 500 index, according to a 424B3 filing with the Securities and Exchange Commission.
The notes will be called at a premium of 12.48% per year if the closing level of the index is less than its starting value on any of three observation dates.
For each $10.00 note, the call amount is $10.624 if called on March 26, 2010, $11.248 if called on Sept. 28, 2010 and $11.872 if called on March 29, 2011.
If the notes are not called, the payout at maturity will be par plus a return determined according to any decline in the index. Investors will share in losses based on gains in the index with no downside protection.
Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the underwriters.
| Issuer: | Bank of America
|
| Issue: | Bear Market Strategic Accelerated Redemption Securities
|
| Underlying asset: | S&P 500
|
| Amount: | $13.51 million
|
| Maturity: | April 5, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus return determined according to any decline in the index; investors share in losses based on gains in the index with no downside protection
|
| Call: | If the closing level of the index is less than its starting value on any of three observation dates; call amount is $10.624 if called on March 26, 2010, $11.248 if called on Sept. 28, 2010 and $11.872 if called on March 29, 2011
|
| Initial index level: | 1,060.87
|
| Pricing date: | Sept. 23
|
| Settlement date: | Oct. 2
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc.
|
| Fees: | 1.5%
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
