By Angela McDaniels
Tacoma, Wash., April 27 - Bank of America Corp. priced $19.4 million 0% Strategic Accelerated Redemption Securities due May 3, 2011 linked to shares of the SPDR Gold Trust, according to a 424B2 filing with the Securities and Exchange Commission.
If the trust's shares close at or above the initial share price on any of three semiannual observation dates, the notes will be automatically called and investors will receive par of $10 plus an annualized call premium of 14.21%.
If the notes are not called, the payout at maturity will be par if the final share price of the trust is greater than or equal to the threshold level - 90% of the initial price. Otherwise, investors will lose 1% for every 1% that the share price declines beyond the threshold level.
The issuer said it applied to list the notes on the NYSE Arca under the symbol "GBN."
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying fund: | SPDR Gold Trust
|
| Amount: | $19.4 million
|
| Maturity: | May 3, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is at least 90% of initial share price, par; otherwise, 1% loss for every 1% that share price declines beyond 10%
|
| Call: | Automatically if fund closes at or above initial share price on any of three semiannual observation dates; redemption amount is par plus 14.21% if called April 26, 2010, par plus 21.315% if called Oct. 26, 2010 and par plus 28.42% if called April 26, 2011
|
| Initial share price: | $88.80
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| Pricing date: | April 23
|
| Settlement date: | April 30
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 2%
|
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