Published on 5/26/2009 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $30.25 million principal-protected notes linked to CMS rates
By Angela McDaniels
Tacoma, Wash., May 26 - Bank of America Corp. priced $30.25 million of 100% principal-protected notes due May 29, 2019 linked to the 30-year and two-year Constant Maturity Swap rates, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly and equals 11% for the first year. Beginning May 29, 2010, interest will accrue at a per-year rate equal to 10 times the spread of the 30-year CMS rate over the two-year CMS rate minus the strike. The strike is 0.8%, and interest will not be less than zero.
The payout at maturity will be par.
Beginning May 29, 2010, the notes will be callable at par on any interest payment date.
Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the agents.
Issuer: | Merrill Lynch & Co., Inc.
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Issue: | 100% principal-protected notes
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Amount: | $30,245,000
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Maturity: | May 29, 2019
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Coupon: | 11% per year for first year, then 10 times the spread of the 30-year CMS rate over the two-year CMS rate minus 0.8%, with a floor of zero; payable quarterly
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Price: | Par
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Payout at maturity: | Par
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Call option: | At par on interest payment dates from May 29, 2010 onward
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Pricing date: | May 21
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Settlement date: | May 29
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Agents: | Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc.
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Fees: | 1.5%
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