Published on 5/2/2011 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $12.1 million Relative Value Stars tied to gold, dollar funds
By Angela McDaniels
Tacoma, Wash., May 2 - Bank of America Corp. priced $12.1 million of 0% Relative Value Strategic Accelerated Redemption Securities due May 7, 2012 linked to the performance of the SPDR Gold Trust versus the PowerShares DB U.S. Dollar Index Bullish Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium of 12% per year if the performance of the gold trust meets or exceeds the performance of the dollar fund on Oct. 25, Jan. 24, 2012 or April 30, 2012.
If the notes are not called, the payout at maturity will be par plus the return of the gold trust minus the return of the dollar fund. Because the last call observation date is also the final valuation date, if the notes are not called, the return of the gold trust will be less than the return of the dollar fund 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 funds: | SPDR Gold Trust and PowerShares DB U.S. Dollar Index Bullish Fund
|
| Amount: | $12,104,470
|
| Maturity: | May 7, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus gold trust return minus dollar fund return
|
| Call: | At par plus 12% per year if performance of gold trust meets or exceeds performance of dollar fund on Oct. 25, Jan. 24, 2012 or April 30, 2012
|
| Initial prices: | $149.81 for gold trust and $20.96 for dollar fund
|
| Pricing date: | April 28
|
| Settlement date: | May 5
|
| Agent: | Merrill Lynch, Pierce, Fenner & Smith Inc.
|
| Fees: | 1.25%
|
| Cusip: | 06050R346
|
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