By Toni Weeks
San Diego, June 19 - Bank of America priced $1.5 million autocallable notes due June 23, 2014 linked to the common stocks of Amazon.com, Inc. and JPMorgan Chase & Co., according to a 424B2 filing with the Securities and Exchange Commission.
If each stock closes at or above 70% of its initial value on a quarterly observation date, investors will receive a conditional coupon payment of $0.50625 for each $10.00 note. Otherwise, no contingent coupon payment will be made for that period.
If the closing share price of each stock is greater than or equal to the initial share price on any quarterly determination date, the notes will be automatically redeemed at par plus the conditional coupon payment.
If the notes are not called and the final share price of each stock is at or above the threshold value - 80% of its starting value - the payout at maturity will be par plus the conditional coupon payment. If the final share price of either stock is less than the threshold value, investors will lose 1% for every 1% decline of the worst-performing stock beyond 20%.
Bank of America Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable notes
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| Underlying stocks: | Amazon.com, Inc. (Nasdaq: AMZN) and JPMorgan Chase & Co. (NYSE: JPM)
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| Amount: | $1.5 million
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| Maturity: | June 23, 2014
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| Coupon: | Conditional coupon payment of 5.0625% if each stock closes at or above 70% of its initial price on a quarterly observation date; otherwise, no contingent coupon payment for that period
|
| Price: | Par of $10.00
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| Payout at maturity: | If final share price of each stock is at or above threshold value, par plus conditional coupon; if final share price of either stock is less than threshold value, investors will lose 1% for every 1% decline of worst-performing stock beyond 20%
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| Call: | Automatically at par plus conditional coupon if closing share price of each stock is greater than initial share price on any quarterly determination date
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| Initial prices: | $218.35 for Amazon, $35.03 for JPMorgan
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| Conditional coupon values: | $152.845 for Amazon, $24.521 for JPMorgan, 70% of initial prices
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| Threshold values: | $174.680 for Amazon, $28.024 for JPMorgan, 80% of initial prices
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| Pricing date: | June 15
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| Settlement date: | June 22
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| Agent: | Bank of America Merrill Lynch
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| Fees: | 1.5%
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| Cusip: | 06051R352
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