Published on 12/28/2012 in the Prospect News Structured Products Daily.
New Issue: Bank of America sells $37.41 million market-linked step-up autocallables on S&P 500
By Marisa Wong
Madison, Wis., Dec. 26 - Bank of America Corp. priced $37.41 million of autocallable market-linked step-up notes due Jan. 25, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above the initial level on either call observation date, the notes will be called at par of $10 plus a call premium of 8.5% per year.
If the index finishes at or above the step-up value - 145% of the initial level - the payout at maturity will be par plus the index gain.
If the index finishes below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 45%.
Investors will receive par if the index falls by up to 5% and will be fully exposed to any losses if the index falls below the 95% threshold level.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | S&P 500
|
| Amount: | $37,409,230
|
| Maturity: | Jan. 25, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus return; if index finishes below step-up level but at or above initial level, par plus 45%; par if index falls by up to 5%; full exposure to any losses if index falls below trigger
|
| Call: | If index closes at or above initial level on call observation date, the notes will be called at par of $10 plus a premium of $0.85 if called on Jan. 17, 2014 and $1.70 if called on Jan. 26, 2015
|
| Initial level: | 1,443.69
|
| Step-up value: | 2,093.35, 145% of initial value
|
| Threshold value: | 1,371.51, 95% of initial level
|
| Pricing date: | Dec. 20
|
| Settlement date: | Dec. 28
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053D823
|
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