By Toni Weeks
San Luis Obispo, Calif., Jan. 28 - Bank of America Corp. priced $7.84 million of 0% lock-in notes due Feb. 2, 2016 linked to the Dow Jones industrial average, according to a 424B2 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 of two observation dates 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. The observation dates are Feb. 3, 2014 and Jan. 26, 2015.
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 91.7% threshold level. Investors will lose 1% for every 1% decline below the threshold level.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Lock-in notes
|
| Underlying index: | Dow Jones industrial average
|
| Amount: | $7,835,320
|
| Maturity: | Feb. 2, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If lock-in event occurs, par plus greater of index return and highest lock-in amount; if no lock-in event occurs, par plus index return if index increases, par if index declines but not below threshold level or par minus 1% for every 1% that index declines below threshold level
|
| Lock-in event: | If index's closing level is at least 110% of initial index level on Feb. 3, 2014 or Jan. 26, 2015; lock-in amount is $1 if increase is 10% to 19.99%, $2 if increase is 20% to 29.99% and $3 if increase is 30% or more
|
| Initial index level: | 13,825.33
|
| Threshold level: | 12,677.83, 91.7% of initial level
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 31
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2.25%
|
| Cusip: | 06053E235
|
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