By E. Janene Geiss
Philadelphia, Sept. 21 - Bank of America Corp. priced $13.77 million of 10% STEP Income Securities due Sept. 29, 2010 linked to the common stock of Goldman Sachs Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The payout at maturity will be par of $10 plus 6.12% if the final share price is greater than or equal to the step level, which is 110% of the initial share price.
If Goldman Sachs shares finish below the step level but at or above the initial share price, the payout will be par. If Goldman Sachs 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: | Goldman Sachs Group, Inc. (NYSE: GS)
|
| Amount: | $13.77 million
|
| Maturity: | Sept. 29, 2010
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 6.12% if Goldman Sachs shares finish at or above the step level; par if shares finish at or above the initial price but below the step level; full exposure to any share price decline
|
| Initial share price: | $181.38
|
| Step level: | $199.52, 110% of initial share price
|
| Pricing date: | Sept. 17
|
| Settlement date: | Sept. 24
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
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