Bank of America plans to price absolute return notes linked to the Dow

By Toni Weeks

San Luis Obispo, Calif., March 18 – Bank of America Corp. plans to price 0% absolute return notes due March 27, 2018 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is zero or positive, the payout at maturity will be par plus 92% to 97% of the index return. The exact participation rate will be set at pricing.

If the index return is negative but the final index level is greater than or equal to 80% of the initial index level, the payout will be par plus the absolute value of the index return.

If the index return is negative and the final index level is less than 80% of the initial index level, investors will be fully exposed to the index’s decline.

The notes (Cusip: 06048WQQ6) are expected to price March 20 and settle March 27.

BofA Merrill Lynch is the selling agent.

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