New Issue: Merrill Lynch prices $7.22 million principal-protected notes linked to CMS rates

By Angela McDaniels

Tacoma, Wash., June 30 - Merrill Lynch & Co., Inc. priced $7.22 million of 100% principal-protected notes due June 30, 2020 linked to the 30-year and 10-year Constant Maturity Swap rates, according to a 424B3 filing with the Securities and Exchange Commission.

Interest is payable quarterly and, for the first year, accrues at 8.4% per year. Beginning June 30, 2009, interest will equal a base rate multiplied by the proportion of days on which the 30-year CMS rate is greater than or equal to the 10-year CMS rate. The base rate will be 8.4% per year up to but excluding June 30, 2013 and 10% per year from then onward.

From June 30, 2009 through June 30, 2013, the notes will be callable at par on any interest payment date.

If the notes are not called, the payout at maturity will be par.

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

Issuer:	Merrill Lynch & Co., Inc.
Issue:	100% principal-protected notes
Amount:	$7,219,000
Maturity:	June 30, 2020
Coupon:	8.4% per year for first year, then base rate multiplied by proportion of days on which 30-year CMS rate is at least equal to 10-year CMS rate; base rate is 8.4% per year beginning June 30, 2009 and 10% per year beginning June 30, 2013
Price:	Par
Payout at maturity:	Par
Call option:	At par on interest payment dates from June 30, 2009 through June 30, 2013
Pricing date:	June 25
Settlement date:	June 30
Underwriters:	Merrill Lynch & Co. and First Republic Securities Co., LLC
Fees:	1.75%

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