By Angela McDaniels
Tacoma, Wash., March 2 - Bank of America Corp. priced $26 million of 0% Strategic Accelerated Redemption Securities due March 1, 2011 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above the initial index level on any of three observation dates, then the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 19.1%. The observation dates are March 1, 2010, Aug. 24, 2010 and Feb. 22, 2011.
If the notes are not called, then the payout at maturity will be par if the final index level is at least 90% of the initial level. Otherwise, investors will lose 1% for every 1% that the index declines beyond 10%.
The issuer said it applied to list the notes on the NYSE Arca under the symbol "SHR."
Merrill Lynch & Co. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying index: | S&P 500
|
| Amount: | $26 million
|
| Maturity: | March 1, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is at least 90% of initial level, par; otherwise, 1% loss for every 1% index decline beyond 10%
|
| Call: | Automatically if index closes at or above initial index level on an observation date; payout will be $11.91 if called March 1, 2010, $12.865 if called Aug. 24, 2010 and $13.82 if called Feb. 22, 2011
|
| Initial index level: | 752.83
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 5
|
| Underwriters: | Merrill Lynch & Co. and First Republic Securities Co., LLC
|
| Fees: | 2%
|
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