New Issue: Bank of America prices $10.72 million market-linked step-up notes tied to index basket

By Toni Weeks

San Luis Obispo, Calif., Feb. 23 – Bank of America Corp. priced $10.72 million of market-linked step-up notes due Feb. 27, 2017 tied to a basket of unequally weighted indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket is comprised of the Euro Stoxx 50 index with a 40% weight, the Nikkei Stock Average index with a 25% weight, the FTSE 100 index with a 20% weight, the S&P/ASX 200 index with a 7.5% weight and the Swiss Market index with a 7.5% weight.

If the basket finishes above the step-up value, 114.89% of the initial basket level, the payout at maturity will be par plus the basket return. If the basket stays flat or increases up to the step-up value, the payout will be par plus a return of 14.89%. Investors will be exposed to any losses.

BofA Merrill Lynch is the underwriter.

Issuer:	Bank of America Corp.
Issue:	Market-linked step-up notes
Underlying basket:	Euro Stoxx 50 index (40% weight), Nikkei Stock Average index (25% weight), FTSE 100 index (20% weight), S&P/ASX 200 index (7.5% weight) and Swiss Market index (7.5% weight)
Amount:	$10,719,000
Maturity:	Feb. 27, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If basket finishes above step-up value, par plus basket return; if basket stays flat or gains but finishes at or below step-up value, par plus 14.89%; exposure to losses
Initial basket level:	100
Step-up value:	114.89, 114.89% of initial value
Pricing date:	Feb. 19
Settlement date:	Feb. 23
Underwriter:	BofA Merrill Lynch
Fees:	2%
Cusip:	06053M815

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