Published on 3/28/2011 in the Prospect News Structured Products Daily.
New Issue: BofA prices $36.96 million Relative Value Stars on ETF trust, Treasury fund
By Marisa Wong
Madison, Wis., March 28 - Bank of America Corp. priced $36.96 million of 0% Relative Value Strategic Accelerated Redemption Securities due April 3, 2012 linked to the performance of the SPDR S&P 500 ETF trust versus the iShares Barclays 20+ Year Treasury Bond fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the performance of the SPDR S&P 500 ETF trust exceeds the performance of the iShares Barclays 20+ Year Treasury Bond fund on any of three call observation dates, the notes will be called at par of $10 plus a premium of 12.2% per year. The observation dates are Sept. 27, Dec. 20, 2011 and March 27, 2012.
If the notes are not called, the payout at maturity will be par plus the difference of the ETF trust return minus the Treasury fund return. Because the last call observation date is also the final valuation date, if the notes are not called, the index return will be negative and investors will lose principal at maturity.
Merrill Lynch, Pierce, Fenner & Smith Inc. is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Relative Value Strategic Accelerated Redemption Securities
|
| Underlying components: | SPDR S&P 500 ETF trust, iShares Barclays 20+ Year Treasury Bond fund
|
| Amount: | $36,962,200
|
| Maturity: | April 3, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | At par plus 12.2% if the performance of the SPDR S&P 500 ETF trust exceeds the performance of the iShares Barclays 20+ Year Treasury Bond fund on any of Sept. 27, Dec. 20, 2011 or March 27, 2012
|
| Payout at maturity: | Par plus the difference of the ETF trust return minus the Treasury fund return
|
| Initial prices: | $130.90 for ETF trust; $92.40 for Treasury fund
|
| Pricing date: | March 24
|
| Settlement date: | April 1
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 1.25%
|
| Cusip: | 06050R213
|
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