Published on 5/4/2010 in the Prospect News Structured Products Daily.
New Issue: Bank of America sells $56.2 million capped leveraged notes on S&P 500
By Susanna Moon
Chicago, May 4 - Bank of America Corp. priced $56.2 million of 0% Capped Leveraged Index Return Notes due April 27, 2012 based on the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The payout at maturity will be par of $10.00 plus double any gain in the index, up to a maximum payout of $12.192 per note.
Investors will receive par if the index falls by up to 10% and will lose 1% for every 1% decline beyond the buffer.
The issuer has applied to list the notes on the NYSE Arca under the ticker "CVF."
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the agents.
Issuer: | Bank of America Corp.
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Issue: | Capped Leveraged Index Return Notes
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Underlying index: | S&P 500
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Amount: | $56,200,430
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Maturity: | April 27, 2012
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Coupon: | 0%
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Price: | Par of $10.00
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Payout at maturity: | Par plus 200% of any index gain, capped at 21.92%; 1% loss for every 1% drop beyond 10%
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Initial index level: | 1,206.78
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Threshold level: | 1,086.10, or 90% of initial level
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Pricing date: | April 29
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Settlement date: | May 6
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Agents: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
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Fees: | 2%
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Listing: | CVF
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Cusip: | 06052H577
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