New Issue: Bank of America prices $7.31 million STEP Income notes on D.R. Horton

By Marisa Wong

Morgantown, W.Va., Dec. 15 – Bank of America Corp. priced $7.31 million of 10% STEP Income Securities due Dec. 30, 2016 tied to D.R. Horton, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

If the stock finishes at or above the step level, 110% of the initial price, the payout at maturity will be par plus 4.51%. If the stock finishes at or above the initial share price but below the step level, the payout will be par. Investors will lose 1% for every 1% decline in the stock.

BofA Merrill Lynch is the underwriter.

Issuer:	Bank of America Corp.
Issue:	STEP Income Securities
Underlying stock:	D.R. Horton, Inc. (NYSE: DHI)
Amount:	$7,306,610
Maturity:	Dec. 30, 2016
Coupon:	10%, payable quarterly
Price:	Par
Payout at maturity:	If stock finishes at or above the step level, par plus 4.51%; if stock finishes at or above initial share price but below step level, par; 1% loss for every 1% decline
Initial price:	$32.30
Step level:	$35.53, 110% of initial price
Pricing date:	Dec. 10
Settlement date:	Dec. 17
Underwriter:	BofA Merrill Lynch
Fees:	1.75%
Cusip:	06053Y371

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