By Angela McDaniels
Tacoma, Wash., Sept. 4 - Merrill Lynch & Co., Inc. priced $118.7 million of 0% Strategic Accelerated Redemption Securities due Aug. 31, 2010 linked to the Dow Jones Industrial Average, according to a 424B3 filing with the Securities and Exchange Commission.
The notes will be automatically called if the index closes at or above its initial level on an observation date. For each $10.00 principal amount, investors will receive $11.306 if the securities are called on Sept. 10, 2009, $11.959 if called on March 10, 2010 and $12.612 if called on Aug. 24, 2010.
The payout at maturity will be par if the final index level is 90% of the initial level or greater. Investors will lose 1% for every 1% that the index falls by more than 10%.
The company said it applied to list the securities on the NYSE Arca under the symbol "DCX."
Merrill Lynch & Co. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Merrill Lynch & Co., Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying index: | Dow Jones Industrial Average
|
| Amount: | $118.7 million
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| Maturity: | Aug. 31, 2010
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par if final index level is 90% of the initial level or higher; otherwise, 1% loss for every 1% decline beyond 10%
|
| Call: | Automatically if index closes at or above initial level on an observation date; payout will be $11.306 if called on Sept. 10, 2009, $11.959 if called on March 10, 2010 and $12.612 if called on Aug. 24, 2010
|
| Initial index level: | 11,502.51
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| Pricing date: | Aug. 27
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| Settlement date: | Sept. 9
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| Underwriters: | Merrill Lynch & Co. and First Republic Securities Co., LLC
|
| Fees: | 2%
|
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