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Bank of America plans autocallable notes linked to Dow, Oracle stock
By Marisa Wong
Madison, Wis., April 3 - Bank of America plans to price autocallable notes due April 2016 linked to the common stocks of Dow Chemical Co. and Oracle Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above 70% of its initial value on a quarterly observation date, investors will receive a conditional coupon payment of $0.3375 to $0.4125 for each $10.00 note. Otherwise, no contingent coupon payment will be made for that period. The exact conditional coupon will be set at pricing.
If the closing share price of each stock is greater than the initial share price on any quarterly determination date, the notes will be automatically redeemed at par plus the conditional coupon payment.
If the notes are not called and the final share price of each stock is at or above the threshold value - 80% of its starting value - the payout at maturity will be par plus the conditional coupon payment. If the final share price of either stock is less than the threshold value, investors will lose 1% for every 1% decline of the worst-performing stock beyond 20%.
The notes (Cusip: 06051R303) will price and settle in April.
Bank of America Merrill Lynch will be the underwriter.
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