By E. Janene Geiss
Philadelphia, June 29 - Bank of America Corp. priced a $7.8 million issue of 10% STEP Income Securities due July 9, 2010 linked to the common stock of Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
The payout at maturity will be par of $10,000 plus the step payment if the final share price is greater than or equal to the step level, which is 110% of the initial share price. The step payment is expected to be 12.85%.
If Qualcomm shares finish below the step level but at or above the initial share price, the payout will be par. If Qualcomm shares finish below the initial price, investors will be fully exposed to the 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: | Qualcomm Inc. (Nasdaq: QCOM)
|
| Amount: | $7.8 million
|
| Maturity: | July 9, 2010
|
| Coupon: | 10%
|
| Price: | Par of $10,000
|
| Payout at maturity: | Par plus 12.85% if Qualcomm shares finish at or above the step level; par if shares finish at or above the initial level but below the step level; full exposure to any share price decline
|
| Initial share price: | $46.21
|
| Step level: | $50.83, 110% of initial share price
|
| Pricing date: | June 25
|
| Settlement date: | July 9
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
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