Published on 11/3/2014 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $11.42 million STEP Income Securities on Splunk
New York, Nov. 3 – Bank of America Corp. priced $11.42 million of 11.5% STEP Income Securities due Nov. 16, 2015 tied to Splunk Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If the stock finishes at or above the step level of $72.73, 111.50% of the initial price, the payout at maturity will be par plus 4.96%. If the stock finishes below the step level but at or above the threshold value, 95% of the initial level, the payout will be par. Investors will be exposed to any losses beyond the 95% threshold level.
Merrill Lynch & Co. is the underwriter.
Issuer: | Bank of America Corp.
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Issue: | STEP Income Securities
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Underlying stock: | Splunk Inc.
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Amount: | $11,418,580
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Maturity: | Nov. 16, 2015
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Coupon: | 11.5%, payable quarterly
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Price: | Par
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Payout at maturity: | If stock finishes at or above the step level of $72.73, 111.50% of the initial price, par plus 4.96%; if stock finishes below step level but at or above threshold level, 95% of initial level, par; 1% loss for every 1% decline beyond 95% threshold level
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Initial price: | $65.23
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Step level: | $72.73, 111.5% of initial level
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Threshold value: | $61.97, 95% of initial level
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Pricing date: | Oct. 30
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Settlement date: | Nov. 7
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Underwriters: | Merrill Lynch & Co.
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Fees: | 1.75%
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Cusip: | 06053M583
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