By Angela McDaniels
Tacoma, Wash., June 3 - Bank of America Corp. priced $48.13 million of 0% autocallable market-linked step-up notes due May 27, 2016 linked to the Russell 2000 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 9% if the notes are called on May 27, 2014 or 18% if they are called on May 26, 2015.
If the final index level is greater than the step-up value, 131.6% 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 31.6%.
Investors will receive par if the index declines by 5% or less and will lose 1% for every 1% that it decline beyond 5%, if any.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $48,130,160
|
| Maturity: | May 27, 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 31.6%; par if index declines by 5% or less; 1% loss for every 1% that index declines beyond 5%, if any
|
| Call: | Automatically at par plus call premium if index closes at or above initial level on May 27, 2014 or May 26, 2015; call premium is 9% for first call date or 18% for second call date
|
| Initial index level: | 994.43
|
| Step-up value: | 1,308.67, 131.6% of initial index level
|
| Pricing date: | May 30
|
| Settlement date: | June 4
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053E797
|
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