By Jennifer Chiou
New York, Aug. 2 - Bank of America Corp. priced $13.62 million of 0% Strategic Accelerated Redemption Securities due Aug. 8, 2011 linked to the SPDR Euro Stoxx 50 exchange-traded fund, according to a 424B2 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 13.3% per year. The observation dates are Jan. 25, 2011, April 26, 2011 and Aug. 1, 2011.
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.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying fund: | SPDR Euro Stoxx 50 exchange-traded fund
|
| Amount: | $13.62 million
|
| Maturity: | Aug. 8, 2011
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Par for losses of up to 10%; exposure to losses beyond 10%
|
| Call option: | If fund closes at or above its initial price on any observation date, the notes will be called at par of $10 plus an annualized call premium of 13.3%
|
| Initial fund level: | $35.49
|
| Threshold level: | $31.94, 90% of initial level
|
| Pricing date: | July 29
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| Settlement date: | Aug. 5
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| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC
|
| Fees: | 1.25%
|
| Cusip: | 06052K430
|
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