Published on 7/26/2010 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $12.91 million capped leveraged notes tied to index basket
By Jennifer Chiou
New York, July 26 - Bank of America Corp. priced $12.91 million of 0% Capped Leveraged Index Return Notes due July 26, 2013 linked to a basket of three indexes, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Russell 2000 index with a 50% weight, the MSCI EAFE index with a 20% weight and the MSCI Emerging Markets index with a 30% weight.
The payout at maturity will be par of $10 plus triple any basket gain, subject to a cap of 49.5%.
Investors will receive par if the basket falls by up to 10% and will be exposed to any decline beyond 10%.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Capped Leveraged Index Return Notes
|
| Underlying indexes: | Russell 2000 index (50% weight), MSCI EAFE index (20% weight) and MSCI Emerging Markets index (30% weight)
|
| Amount: | $12,912,660
|
| Maturity: | July 26, 2013
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus triple any basket gain, capped at 49.5%; par if basket falls by up to 10%; | full exposure to losses beyond 10%
|
| Initial levels: | 635.48 for Russell 2000; 1,445.68 for MSCI EAFE; | 973.39 for MSCI Emerging Markets
|
| Pricing date: | July 22
|
| Settlement date: | July 29
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 2.25%
|
| Cusip: | 06052K471
|
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