By Angela McDaniels
Tacoma, Wash., Dec. 23 - Bank of America Corp. priced $21.61 million of 10% STEP Income Securities due Jan. 4, 2011 linked to the common stock of Union Pacific Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The payout at maturity will be par of $10 plus 4.2% if the final share price is greater than or equal to the step level, which is 110% of the initial share price.
If Union Pacific shares finish below the step level but at or above the initial share price, the payout will be par. Investors will be exposed to any share price decline.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Union Pacific Corp. (NYSE: UNP)
|
| Amount: | $21.61 million
|
| Maturity: | Jan. 4, 2011
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 4.2% 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 price; exposure to any share price decline
|
| Initial share price: | $64.50
|
| Step level: | $70.95, 110% of initial price
|
| Pricing date: | Dec. 21
|
| Settlement date: | Dec. 30
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
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