By Marisa Wong
Madison, Wis., Aug. 19 - Bank of America Corp. priced $35.01 million of 8% STEP Income Securities due Aug. 29, 2014 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 $0.452. The step level is equal to 108% 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% decline below the threshold level.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX)
|
| Amount: | $35,011,420
|
| Maturity: | Aug. 29, 2014
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If final price of Freeport-McMoRan stock is greater than or equal to step level, par plus 4.52%; 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%
|
| Initial price: | $31.65
|
| Step level: | $34.18, 108% of initial price
|
| Threshold level: | $30.07, 95% of initial price
|
| Pricing date: | Aug. 15
|
| Settlement date: | Aug. 22
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06053F380
|
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