Bank of America plans to price lock-in notes due 2016 tied to the Dow

By Susanna Moon

Chicago, Jan. 7 - Bank of America Corp. plans to price 0% lock-in notes due February 2016 linked to the Dow Jones industrial average, according to an FWP filing with the Securities and Exchange Commission.

If a lock-in event occurs, the payout at maturity will be par of $10 plus the greater of the index return and the highest lock-in amount.

The lock-in provision is triggered if the index's closing level on either observation date, in February 2014 or January 2015, is at least 110% of the initial index level. The lock-in amount will be $1 per note if the index closes between 110% and 119.99% of the initial level, $2 if the index closes between 120% to 129.99% of the initial level and $3 if the index closes at or above 130% of the initial level.

If no lock-in event occurs, investors will receive par plus any index gain.

The payout will be par if the index falls by up to the 87% to 97% threshold level, and investors will lose 1% for every 1% decline below the threshold level, with the exact level to be set at pricing.

Bank of America Merrill Lynch is the agent.

The notes will price and settle in January.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.