Bank of America plans capped leveraged notes linked to stock basket

By Susanna Moon

Chicago, June 25 - Bank of America Corp. plans to price capped Leveraged Index Return Notes due June 2014 linked to a basket of 21 equally weighted stocks, according to an FWP filing with the Securities and Exchange Commission.

The underlying companies are Amazon.com, Inc., Apple Inc., Chevron Corp., Chipotle Mexican Grill, Inc., Coca-Cola Co., Colgate-Palmolive Co., Ecopetrol SA, Exxon Mobil Corp., Gilead Sciences, Inc., International Business Machines Corp., Johnson & Johnson, LKQ Corp., Marathon Oil Corp., McDonald's Corp., Microsoft Corp., PepsiCo, Inc., Procter & Gamble Co., Qualcomm Inc., Raytheon Co., Signature Bank Corp. and TransDigm Group Inc.

The payout at maturity will be par of $10.00 plus 110% to 130% of any gain in the index, up to a maximum return of $12.00 per note. The exact participation rate will be set at pricing.

Investors will receive par if the index falls by up to 16% and will be exposed to any losses beyond 16%.

Bank of America Merrill Lynch is the agent.

The notes are expected to price in June and settle in July.

© 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.