Bank of America prices $32.94 million Dow-linked Mitts; Barclays brings Facebook-linked notes

By Sheri Kasprzak

New York, June 17 - There were two significant offerings that hit the market on Monday.

The larger of the two offerings came from Bank of America Corp., which priced $32.94 million of zero-coupon Market Index Target-Term Securities linked to the Dow Jones industrial average.

Those securities are due June 26, 2020 and pay at maturity par of $10 plus any gain on the index, subject to a maximum return of 106%. The payout at maturity will be par if the index falls.

The final index level will be the average of the closing index levels on the five trading days ending June 23, 2020.

BofA Merrill Lynch is the underwriter.

Notes linked to Facebook

The day's other substantial offering came from Barclays Bank plc. The bank came to market with $25.18 million of zero-coupon Accelerated Return Notes due July 3, 2014 linked to the common stock of Facebook Inc.

The notes pay out at maturity par of $10 plus triple any increase in the stock, subject to a 32.75% cap. Investors are fully exposed to any decline in the stock. The final stock price will be the average of the closing prices on the five calculation days ending June 26, 2014.

BofA Merrill Lynch is the underwriter for this offering as well.

"It's a decent-sized deal," one market source said.

"The payout is attractive, so that's probably a big draw. You'd have to be pretty sure about the stock's performance."

Facebook's stock dropped 24.77% between June 18, 2012 and June 14, 2013. On Monday, however, the stock climbed by 39 points, or 1.66%, to close out the session at $24.02.

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