Bank of America to price income notes linked to 20 common stocks

By Marisa Wong

Madison, Wis., Sept. 5 - Bank of America Corp. plans to price income notes due September 2018 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Altria Group Inc., Apple Inc., Boeing Co., Caterpillar Inc., Darden Restaurants, Inc., Dell Inc., Eaton Corp., Eli Lilly & Co., Hewlett-Packard Co., Intel Corp., Kellogg Co., Kimberly-Clark Corp., McDonald's Corp., Microsoft Corp., Pfizer Inc., Philip Morris International, Inc., PPL Corp., Procter & Gamble Corp., Spectra Energy Corp. and Windstream Corp.

Interest is payable semiannually. If at least 12 of the 20 stocks close at or above their respective initial share prices on the relevant valuation date, the interest rate for that interest period will be 5% to 6% per year. Otherwise, it will be 0.5% per year for that interest period. The exact maximum interest rate will be set at pricing.

The payout at maturity will be par of $10 plus the last interest payment.

The notes are expected to price and settle in September.

Bank of America Merrill Lynch is the agent.

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