By Angela McDaniels
Tacoma, Wash., April 2 - Bank of America Corp. priced $42.86 million of 0% autocallable market-linked step-up notes due March 28, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus a call premium if the index closes at or above the initial index level on either of two observation dates. The call premium is 8.5% if the notes are called on March 31, 2014 or 17% if they are called on March 20, 2015.
If the final index level is greater than the step-up value -130% of the initial level - 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, the payout will be par plus 30%.
Investors will be fully exposed to any index decline.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | S&P 500
|
| Amount: | $42,855,050
|
| Maturity: | March 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 30%; full exposure to any index decline
|
| Call: | Automatically at par plus call premium if index closes at or above initial level on March 31, 2014 or March 20, 2015; call premium is 8.5% for first call date or 17% for second call date
|
| Initial index level: | 1,569.19
|
| Step-up value: | 2,039.95, 130% of initial index level
|
| Pricing date: | March 28
|
| Settlement date: | April 5
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053E508
|
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