Published on 12/2/2013 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $20.63 million autocallable step-up notes linked to Russell 2000
By Angela McDaniels
Tacoma, Wash., Dec. 2 - Bank of America Corp. priced $20.63 million of 0% autocallable market-linked step-up notes due Nov. 28, 2016 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called if the index closes at or above the initial index level on either of two observation dates. The call amount is $10.90 per $10.00 principal amount if the notes are called on Dec. 5, 2014 and $11.80 if they are called on Nov. 20, 2015.
If the notes and not called and the final index level is greater than the step-up value, 122.25% of the initial level, then the payout at maturity will be par plus the index return.
If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, then the payout will be par plus 22.25%.
Investors will receive par if the index declines by 5% or less and will have 1-to-1 exposure to any decline beyond 5%.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $20,632,870
|
| Maturity: | Nov. 28, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is greater than step-up value, par plus index return; if final index level is greater than or equal to initial level but less than or equal to step-up value, par plus 22.25%; if final index level is less than initial index level but greater than or equal to threshold value, par; otherwise, 1% loss for every 1% that index declines below threshold value
|
| Call: | Automatically at par plus 9% per year if index closes at or above initial level on Dec. 5, 2014 or Nov. 20, 2015
|
| Initial index level: | 1,134.53
|
| Step-up value: | 1,386.96, or 122.25% of initial index level
|
| Threshold value: | 1,077.80, or 95% of initial level
|
| Pricing date: | Nov. 26
|
| Settlement date: | Dec. 3
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053G206 |
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