By Toni Weeks
San Luis Obispo, Calif., July 1 – Bank of America Corp. priced $5 million of 0% digital return notes due July 3, 2017 linked to the 30-year Constant Maturity Swap rate, according to a 424B2 filing with the Securities and Exchange Commission.
If the 30-year CMS rate finishes at or above the 4.515% upper reference rate, the payout at maturity will be par plus the digital return of 21.1%.
Investors will receive par if the rate finishes at or above its initial rate but below the upper reference rate.
Otherwise, the payout will be $800 per $1,000 principal amount.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Digital return notes
|
| Underlying rate: | 30-year Constant Maturity Swap rate
|
| Amount: | $5,008,000
|
| Maturity: | July 3, 2017
|
| Coupon: | 0%
|
| Price: | Par of $1,000
|
| Payout at maturity: | If final rate is greater than or equal to 4.515% (initial rate plus 120 basis points), par plus a digital return of 21.1%; if final rate is less than initial rate, $800 per note; in all other cases, par
|
| Initial rate: | 3.315%
|
| Upper reference rate: | 4.515% (initial rate plus 1.2%)
|
| Pricing date: | June 26
|
| Settlement date: | July 3
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06048WPP9
|
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