Bank of America to price autocallable step-up notes linked to Nikkei

By Angela McDaniels

Tacoma, Wash., June 25 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due July 2018 linked to the Nikkei Stock Average 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 of 9.5% per year if the index closes at or above the initial index level on either observation date, which will fall in August 2016 and July 2017.

If the notes are not called and the final index level is greater than the step-up value, the payout at maturity will be par plus the index return. The step-up value is expected to be 118% to 124% of the initial index level.

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 the step-up payment, which is expected to be 18% to 24%.

If the final index level is less than the initial index level, investors will be fully exposed to the decline.

The exact step-up value and step-up payment will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price in July and settle in August.

© 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.