New Issue: Bank of America prices $64.2 million 97% protected step-up notes linked to three currencies

By Angela McDaniels

Tacoma, Wash., July 31 - Bank of America Corp. priced $64.2 million of zero-coupon 97% principal-protected step-up notes due Aug. 2, 2011 linked to a basket of currencies relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Indonesian rupiah with a 33.33% weight, the Indian rupee with a 33.33% weight and the Russian ruble with a 33.34% weight.

If the basket appreciates relative to the dollar, the payout at maturity will be par of $10.00 plus the greater of 16% and the basket gain.

If the basket depreciates relative to the dollar, investors will share in the decline, subject to a minimum payout of $9.70 per note.

Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the agents.

Issuer:	Bank of America Corp.
Issue:	97% principal-protected step-up notes
Underlying currencies:	Indonesian rupiah (33.33% weight), Indian rupee (33.33% weight) and Russian ruble (33.34% weight)
Amount:	$64.2 million
Maturity:	Aug. 2, 2011
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket appreciates, par plus the greater of the basket gain and 16%; if basket depreciates, exposure to the decline up to a maximum loss of 3%
Initial exchange rates:	9,972 for the rupiah, 48.47 for the rupee and 31.3908 for the ruble
Pricing date:	July 29
Settlement date:	July 31
Agents:	Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc.
Fees:	1.75%

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.