By Marisa Wong
Madison, Wis., Oct. 28 - Bank of America Corp. priced $229.77 million of 0% market-linked step-up notes due Oct. 28, 2016 tied to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium if the index's closing level is greater than or equal to the initial level on either observation date. The premium will be $1.20 if the notes are called on Oct. 24, 2014 or $2.40 if the notes are called on Oct. 23, 2015.
If the index finishes above the step-up value - 147% of the initial value - the payout at maturity will be par plus the index return.
If the index return is zero or positive but the index finishes at or below the step-up value, the payout will be par plus the step-up payment of 47%.
Investors will be fully exposed to any index decline.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Market-linked step-up notes
|
| Underlying index: | Euro Stoxx 50
|
| Amount: | $229,765,118
|
| Maturity: | Oct. 28, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus index return; if index stays flat or gains but finishes at or below step-up value, par plus 47%; full exposure to any index decline
|
| Call: | Automatically at par plus a premium if index closes at or above initial level on either observation date; premium is 12% if notes are called on Oct. 24, 2014 or 24% if called on Oct. 23, 2015
|
| Initial index level: | 3,038.96
|
| Step-up value: | 4,467.27, 147% of initial value
|
| Pricing date: | Oct. 24
|
| Settlement date: | Oct. 30
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053F851
|
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