By Jennifer Chiou
New York, Dec. 30 - Bank of America Corp. priced $18,602,340 of 0% market-linked step-up notes due Jan. 3, 2017 tied to the Russell 2000 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 $0.90 if the notes are called on Dec. 26, 2014 or $1.80 if the notes are called on Dec. 18, 2015.
If the index finishes above the step-up value - 117% 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 17%.
Investors will receive par for losses up to 5% and will be exposed to any losses beyond 5%.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Market-linked step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $18,602,340
|
| Maturity: | Jan. 3, 2017
|
| 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 17%; par for losses up to 5% and exposure to losses beyond 5%
|
| Call: | Automatically at par plus a premium if index closes at or above initial level on either observation date; premium is 9% if notes are called on Dec. 26, 2014 or 18% if called on Dec. 18, 2015
|
| Initial index level: | 1,157.22
|
| Step-up value: | 1,353.95, 117% of initial value
|
| Threshold value: | 1,099.36, 95% of initial value
|
| Pricing date: | Dec. 23
|
| Settlement date: | Dec. 31
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053G412
|
© 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.
