By Marisa Wong
Madison, Wis., April 4 - Bank of America Corp. priced $1.5 million of autocallable notes due April 11, 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 price on a quarterly observation date, investors will receive a conditional coupon payment of $0.37 for each $10.00 note. Otherwise, no contingent coupon payment will be made for that period.
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 the initial price - 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%.
Bank of America Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable notes
|
| Underlying stocks: | Dow Chemical Co. and Oracle Corp.
|
| Amount: | $1.5 million
|
| Maturity: | April 11, 2016
|
| Coupon: | Conditional coupon payment of 3.7% if each stock closes at or above 70% of its initial price on a quarterly observation date; otherwise, no contingent coupon payment for that period
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price of each stock is at or above threshold value, par plus conditional coupon; if final share price of either stock is less than threshold value, investors will lose 1% for every 1% decline of worst-performing stock beyond 20%
|
| Call: | Automatically at par plus conditional coupon if closing share price of each stock is greater than initial share price on any quarterly determination date
|
| Initial prices: | $34.97 for Dow, $29.53 for Oracle
|
| Conditional coupon values: | $24.479 for Dow, $20.671 for Oracle, 70% of initial prices
|
| Threshold values: | $27.976 for Dow, $23.624 for Oracle, 80% of initial prices
|
| Pricing date: | April 2
|
| Settlement date: | April 11
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 1.5%
|
| Cusip: | 06051R303
|
© 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.
