By Susanna Moon
Chicago, April 12 - Bank of America Corp. priced $29.96 million of 9% STEP Income Securities due April 21, 2011 based on Schlumberger Ltd. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If Schlumberger stock finishes at or above the step level - 109% of the initial share price - the payout at maturity will be par of $10 plus a step payment of 4.15%.
If Schlumberger stock finishes at or above the initial share price but below the step level, the payout will be par.
Investors will be exposed to any losses.
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: | Schlumberger Ltd. (Symbol: SLB)
|
| Amount: | $29,960,320
|
| Maturity: | April 21, 2011
|
| Coupon: | 9%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | If stock finishes at or above step level, par plus 4.15%; par if stock finishes at or above initial price but below step level; exposure to any losses
|
| Initial share price: | $66.07
|
| Step level: | $72.02, 109% of initial price
|
| Pricing date: | April 8
|
| Settlement date: | April 13
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
| Cusip: | 06052H601
|
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