By Marisa Wong
Madison, Wis., July 30 - Bank of America Corp. priced $23.32 million of 11% STEP Income Securities due Aug. 9, 2013 linked to the common stock of Freeport-McMoRan Copper & Gold Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
If the final price of Freeport-McMoRan stock is greater than or equal to the step level, the payout at maturity will be par of $10 plus the step payment of $0.743. The step level is equal to 111% of the initial share price.
If the final share price is greater than or equal to the threshold level, 95% of the initial share price, but less than the step level, investors will receive par.
If the final share price is less than the threshold level, investors will lose 1% for every 1% that the price declines below the threshold level.
Bank of America Merrill Lynch is the agent.
Issuer: | Bank of America Corp.
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Issue: | STEP Income Securities
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Underlying stock: | Freeport-McMoRan Copper & Gold Inc.
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Amount: | $23,323,890
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Maturity: | Aug. 9, 2013
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Coupon: | 11%, payable quarterly
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Price: | Par of $10
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Payout at maturity: | If final price of Freeport-McMoRan stock is greater than or equal to step level, par plus 7.43%; if final share price is greater than or equal to threshold level but less than step level, par; 1% loss for every 1% decline beyond 5%
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Initial price: | $32.13
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Step level: | $35.66, 111% of initial price
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Threshold level: | $30.52, 95% of initial price
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Pricing date: | July 26
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Settlement date: | Aug. 2
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Agent: | Bank of America Merrill Lynch
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Fees: | 1.75%
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Cusip: | 06051R667
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