By Susanna Moon
Chicago, Aug. 3 - Bank of America Corp. priced $11.4 million 0% Strategic Accelerated Redemption Securities due Aug. 2, 2011 linked to the iShares MSCI Brazil index fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at a premium of 21.01% per year if the fund closes at or above its starting value on any of three observation dates.
For each $10.00 note, the call amount is $12.1010 if called on Aug. 2, 2010, $13.1515 if called on Jan. 25, 2011 and $14.2020 if called on July 26, 2011.
If the notes are not called, investors will receive par at maturity if the index falls by up to 10% and will lose 1% for each 1% decline beyond 10%.
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: | iShares MSCI Brazil index fund
|
| Amount: | $11.4 million
|
| Maturity: | Aug. 2, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par for losses of up to 10%; share in losses beyond 10% drop
|
| Call: | Automatically if the index closes at or above starting value on observation date; at $12.1010 if called on Aug. 2, 2010, $13.1515 on Jan. 25, 2011 and $14.2020 on July 26, 2011
|
| Initial share price: | $57.67
|
| Threshold level: | 90% of initial level
|
| Pricing date: | July 30
|
| Settlement date: | Aug. 6
|
| Underwriters: | Merrill Lynch & Co. and First Republic Securities Co., LLC
|
| Fees: | 2%
|
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