By Angela McDaniels
Tacoma, Wash., Jan. 6 - Bank of America Corp. priced $8.27 million of 0% lock-in notes due Dec. 23, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If a lock-in event occurs, the payout at maturity will be par of $10 plus the greater of the index return and the highest lock-in amount.
The lock-in provision is triggered if the index's closing level on either observation date - Jan. 14, 2013 and Jan. 10, 2014 - is at least 110% of the initial index level. The lock-in amount is $1 per note if the increase is 10% to 19.99%, $2 if the increase is 20% to 29.99% and $3 if the increase is 30% or more.
If no lock-in event occurs, investors will receive par plus the index return if the index increases. They will receive par if the index declines but not below the threshold level, and they will lose 1% for every 1% that it declines below the threshold level.
The threshold level is 75.83% of the initial index level.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Lock-in notes
|
| Underlying index: | S&P 500
|
| Amount: | $8,267,320
|
| Maturity: | Dec. 23, 2014
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If lock-in event occurs, par plus greater of index return and highest lock-in amount; if no lock-in event occurs, par plus index return if index increases, par if index declines but not below threshold level or par minus 1% for every 1% that index declines below threshold level
|
| Lock-in event: | If index's closing level is at least 110% of initial index level on Jan. 14, 2013 or Jan. 10, 2014; lock-in amount is $1 if increase is 10% to 19.99%, $2 if increase is 20% to 29.99% and $3 if increase is 30% or more
|
| Initial index level: | 1,277.30
|
| Threshold level: | 968.58, 75.83% of initial level
|
| Pricing date: | Jan. 4
|
| Settlement date: | Jan. 11
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2.25%
|
| Cusip: | 06051P208
|
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