By Susanna Moon
Chicago, Sept. 30 – Bank of America Corp. priced $2.5 million of contingent income autocallable securities due Aug. 4, 2017 linked to the common stocks of AT&T Inc. and Pfizer Inc. and the American Depositary Receipts of BP plc, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 2.75% if each stock closes at or above the 75% barrier level on the determination date for that quarter.
If each stock closes at or above the initial price on any quarterly determination date other than the final one, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called and each stock finishes at or above the barrier level, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of the worse performing stock equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | AT&T Inc. (Symbol: T), Pfizer Inc. (Symbol: PFE) and BP plc (Symbol: BP)
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| Amount: | $2.5 million
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| Maturity: | Sept. 30, 2016
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| Contingent payment: | 2.75% for quarter if each stock closes at or above barrier level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if each stock finishes at or above barrier level; otherwise a number of the shares of the worst performing stock equal to $10 divided by initial price or, at issuer’s option, equivalent cash value
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| Call: | At par plus contingent payment if each stock closes at or above the initial price on any determination date other than the final determination date
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| Barrier levels: | 75% of initial price
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| Pricing date: | Sept. 25
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| Settlement date: | Sept. 30
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| Agent: | BofA Merrill Lynch
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| Fees: | 3.1%
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| Cusip: | 060505EK6
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