Bank of America prices two sizable offerings; one deal linked to Euro Stoxx 50, one to S&P 500

By Sheri Kasprzak

New York, Oct. 28 - Bank of America Corp. led the way for structured products pricings on Monday, offering up two larger deals, according to filings with the Securities and Exchange Commission.

The issuer announced the pricing of $229.77 million of zero-coupon autocallable market-linked step-up notes linked to the Euro Stoxx 50 index.

The notes, which are due Oct. 28, 2016, pay at maturity par plus the index return provided the index finishes above the step-up value, 147% of the initial value.

If the index return is zero or positive but the index finishes at or below the step-up value, the payout will be par plus the step-up payment of 47%.

Investors will be fully exposed to any index decline.

The notes will be called at par of $10.00 plus a premium if the index's closing level is greater than or equal to the initial level on either observation date. The premium will be $1.20 if the notes are called on Oct. 24, 2014 or $2.40 if the notes are called on Oct. 23, 2015.

BofA Merrill Lynch is the underwriter.

The index was down 12.46 points, or 0.41%, on Monday to close at 3,022.04. Between Oct. 28, 2011 and Friday, the index climbed by 23.24%, and between Oct. 29, 2012 and Friday, the index gained 22.42%. For the year through Friday, the index has climbed by 11.92%.

BofA sells S&P-linked notes

Also during the session, the bank priced $37.8 million of zero-coupon capped leveraged index return notes due Oct. 30, 2015 linked to the S&P 500 index.

The notes will pay out at maturity par plus 200% of the index return, subject to a maximum payout of par plus 12.72%, assuming the index return is positive. Investors receive par if the index falls by up to 10% and will lose 1% for every 1% decline in the index beyond 10%.

BofA Merrill Lynch is the underwriter for those notes.

On Monday, the index closed up 2.34 points, or 0.13%, to end at 1,762.11.

From Oct. 28, 2011 to Friday, the index has gained 36.94%. From Oct. 31, 2012 to Friday, the index has gained 24.62%. For the year through Friday, the index has climbed by 20.33%.

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