PROSPECTUS SUPPLEMENT
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REGISTRATION NO. 333-78575
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(To Prospectus dated March 15, 2011)
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Filed Pursuant to Rule 424(b)(3)
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Termination and Liquidation of the Internet HOLDRS Trust. In light of the recently announced definitive Asset Purchase Agreement entered into between Merrill Lynch & Co., Inc. and Van Eck Associates Corporation that is discussed below under “RECENT DEVELOPMENTS,” the Initial Depositor believes it is likely the Internet HOLDRS Trust will be terminated during the fourth quarter of 2011 and subsequently liquidated. The Initial Depositor expects that exchange offers will be commenced for certain Trusts. The Initial Depositor intends to exercise its right to cause termination of all the Trusts; including the Internet HOLDRS Trust, to become effective if and when those exchange offers are completed and the HOLDRS sought are accepted for exchange. If the Trusts are terminated, the property of the Internet HOLDRS Trust would subsequently be liquidated in accordance with the terms of the relevant depositary trust agreement governing the Trust. For additional information please see “RECENT DEVELOPMENTS” and “AMENDMENTS TO THE HOLDRS TRUST AGREEMENTS.”
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Delisting from the NYSE Arca. The NYSE Arca may consider delisting the Internet HOLDRS if (i) the Internet HOLDRS has fewer than the required number of record and/or beneficial holders for 30 or more consecutive trading days; (ii) the number of Internet HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; (iii) the market value of all Internet HOLDRS issued and outstanding falls below levels prescribed by the NYSE Arca; or (iv) any other event shall occur or conditions exists which, in the opinion of the NYSE Arca, makes further listing of the Internet HOLDRS on the NYSE Arca inadvisable. If the Internet HOLDRS are delisted by the NYSE Arca, a termination event will result unless the Internet HOLDRS are listed for trading on another U.S. national securities exchange within five business days from the date the Internet HOLDRS are delisted. In view of the Asset Purchase Agreement entered into by Merrill Lynch & Co., Inc. and Van Eck Associates Corporation that is discussed below under “RECENT DEVELOPMENTS,” Merrill Lynch & Co. expects that in the fourth quarter of 2011, the Internet HOLDRS will be delisted from trading on the NYSE Arca and does not expect that the Internet HOLDRS will be listed for trading on another U.S. national securities exchange. In addition, the Initial Depositor understands that if the Internet HOLDRS Trust is terminated, the NYSE Arca will immediately suspend the HOLDRS permanently from trading on the NYSE Arca or any other national securities exchange. Following a permanent suspension, the NYSE Arca would take action to delist the HOLDRS. For additional information, please see “RECENT DEVELOPMENTS” and “RISK FACTORS – General Risk Factors – Termination and Liquidation of the Internet HOLDRS Trust.”
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MERRILL LYNCH, PIERCE, FENNER & SMITH | ||||
INCORPORATED | ||||
By: | /s/ Liam B. O’Neil | |||
Liam B. O’Neil | ||||
Attorney-in-Fact and Managing Director, Head of Market Linked Solutions |
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THE BANK OF NEW YORK MELLON, | ||||
as Trustee
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By: | /s/ Joanne DiGiovanni Hawke | |||
Joanne DiGiovanni Hawke
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Managing Director
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