Bank of America plans to price Stars linked to SPDR Euro Stoxx 50 ETF

By Angela McDaniels

Tacoma, Wash., June 28 - Bank of America Corp. plans to price one-year 0% Strategic Accelerated Redemption Securities linked to the SPDR Euro Stoxx 50 exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

If the ETF's shares close at or above the initial share price on any observation date, the notes will be automatically called at par plus a call premium of 12% to 16% per year. The observation dates are expected to fall in January 2011, April 2011 and July 2011. The exact dates and call premium will be set at pricing.

If the notes are not called, the payout at maturity will be par if the final share price is greater than or equal to the threshold price - 90% of the initial share price. Investors will be exposed to any decline below the threshold price.

The notes will price in July or August.

Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.

© 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.