By Jennifer Chiou
New York, July 12 - Bank of America Corp. priced $10 million of floating-rate commodity index-linked notes due Aug. 18, 2011 linked to the Dow Jones-UBS Commodity Index 2 Month Forward Total Return, according to an FWP filing with the Securities and Exchange Commission.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
The coupon is Libor minus 10 basis points. It will be reset monthly and payable at maturity.
The payout at maturity will be par plus triple the sum of the index return minus the Treasury bill yield less a fee of 0.42% per year.
The notes will be called if the index closes at 15% or more below its initial level. The payout will be calculated in the same way as at maturity.
| Issuer: | Bank of America Corp.
|
| Issue: | Commodity index-linked notes
|
| Underlying index: | Dow Jones-UBS Commodity Index 2 Month Forward Total Return
|
| Amount: | $10 million
|
| Maturity: | Aug. 18, 2011
|
| Coupon: | Libor minus 10 bps, reset monthly and payable at maturity
|
| Price: | Par
|
| Payout at maturity: | Par plus 300% of sum of index return minus the T-bill yield less fee of 0.42% per year
|
| Call: | Automatically if index closes at 85% of its initial level or below; payout calculated in same way as at maturity
|
| Pricing date: | July 12
|
| Settlement date: | July 20
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | None
|
| Cusip: | TBD
|
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