New Issue: Merrill Lynch prices $114.1 million 0% Stars linked to S&P 500

By Jennifer Chiou

New York, Aug. 6 - Merrill Lynch & Co., Inc. priced $114.1 million of 0% Strategic Accelerated Redemption Securities due Aug. 3, 2010 linked to the S&P 500 index, according to a 424B3 filing with the Securities and Exchange Commission.

If the closing level of the index on any observation date is at least the initial level, the notes will be called and investors will receive par of $10 plus an annualized return of 13.32%. The observation dates are Aug. 10, 2009, Feb. 7, 2010 and July 27, 2010.

If the notes are not called early, the payout at maturity will be par minus 1% for each 1% that the index declines beyond 10%. The payout at maturity will not be more than par.

Merrill Lynch & Co. and its affiliate First Republic Securities Co., LLC are the underwriters.

Issuer:	Merrill Lynch & Co., Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$114.1 million
Maturity:	Aug. 3, 2010
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par minus 1% for each 1% that the index declines beyond 10%; maximum of par
Call:	On any observation date for par plus 13.32% per year if index closes at or above initial level; observation dates are Aug. 10, 2009, Feb. 7, 2010 and July 27, 2010
Initial level:	1,284.26
Pricing date:	July 30
Settlement date:	Aug. 8
Underwriters:	Merrill Lynch & Co. and affiliate First Republic Securities Co., LLC
Fees:	2%
Listing:	Amex: SXU

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