By Angela McDaniels
Tacoma, Wash., Sept. 30 - Bank of America Corp. priced $24.86 million of 0% autocallable market-linked step-up notes due Sept. 23, 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% if the notes are called on Oct. 3, 2014 or 16% if they are called on Sept. 18, 2015.
If the final index level is greater than the step-up value, 135.47% 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 35.47%.
If the final index level is less than the initial index level, investors will have 1-to-1 exposure to the 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: | $24,856,630
|
| Maturity: | Sept. 23, 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 35.47%; if final index level is less than initial index level, full exposure to index decline
|
| Call: | Automatically at par plus 8% per year if index closes at or above initial level on Oct. 3, 2014 or Sept. 18, 2015
|
| Initial index level: | 1,698.67
|
| Step-up value: | 2,301.19, 135.47% of initial index level
|
| Pricing date: | Sept. 26
|
| Settlement date: | Oct. 4
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053F653
|
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