By Angela McDaniels
Tacoma, Wash., Nov. 23 - Bank of America Corp. priced $20 million of 8% STEP Income Securities due Dec. 7, 2010 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The payout at maturity will be par of $10 plus 4.95% if the final share price is greater than or equal to the step level, which is 108% of the initial share price.
If Microsoft shares finish below the step level but at or above the initial share price, the payout will be par. Investors will be exposed to any share price decline.
Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC are the underwriters.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Microsoft Corp. (Nasdaq: MSFT)
|
| Amount: | $20 million
|
| Maturity: | Dec. 7, 2010
|
| Coupon: | 8%, payable quarterly
|
| Price: | Par of $10.00
|
| Payout at maturity: | Par plus 4.95% if Microsoft shares finish at or above step level; par if shares finish at or above initial price but below step level; full exposure to any decline
|
| Initial share price: | $29.83
|
| Step level: | $32.22, 108% of initial share price
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 30
|
| Underwriters: | Merrill Lynch, Pierce, Fenner & Smith Inc. and First Republic Securities Co., LLC
|
| Fees: | 1.75%
|
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