Bank of America to price 97% principal-protected step up notes linked to currency basket

By Angela McDaniels

Tacoma, Wash., June 25 - Bank of America Corp. plans to price zero-coupon 97% principal-protected step up notes due two years after issuance linked to a basket of currencies, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Russian ruble with a 33.34% weight, the Indonesian rupiah with a 33.33% weight and the Indian rupee with a 33.33% weight.

If the basket appreciates relative to the dollar, the payout at maturity will be par of $10.00 plus the greater of the threshold value and the basket gain. The threshold value is expected to be 12% to 18% and will be set at pricing.

Investors will be exposed to any depreciation in the basket relative to the dollar, subject to a minimum payout of $9.70 per note.

The notes will price in July or August.

Merrill Lynch, Pierce, Fenner & Smith Inc., First Republic Securities Co., LLC and Banc of America Investment Services, Inc. are the agents.

© 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.