Bank of America to price income notes linked to 20 common stocks

By Angela McDaniels

Tacoma, Wash., Aug. 14 - Bank of America Corp. plans to price income notes due August 2018 linked to a basket of common stocks, according to an FWP filing with the Securities and Exchange Commission.

The basket includes Altria Group Inc., Boeing Co., ConAgra Foods, Inc., Darden Restaurants, Inc., Dell Inc., Eaton Corp., Eli Lilly & Co., Hewlett-Packard Co., Home Depot, Inc., Intel Corp., Kellogg Co., Kimberly-Clark Corp., Marathon Oil Corp., Merck & Co. Inc., Microsoft Corp., Philip Morris International, Inc., PPL Corp., Procter & Gamble Corp., Spectra Energy Corp. and Windstream Corp.

Interest will be payable semiannually. If at least 12 of the 20 stocks close at or above their respective initial share prices on the relevant valuation date, the interest rate for that interest period will be equal to the maximum coupon rate. Otherwise, it will be 0.5% per year. The maximum coupon rate is expected to be 5% to 6% per year and will be set at pricing.

The payout at maturity will be par of $10 plus the last interest payment.

Bank of America Merrill Lynch is the agent.

The notes are expected to price in August and settle in September.

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