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Published on 2/6/2014 in the Prospect News Structured Products Daily.

New Issue: Bank of America prices $35 million 8% floored participation notes tied to Allergan

By Marisa Wong

Madison, Wis., Feb. 6 - Bank of America Corp. priced $35 million of 8% floored participation notes due Feb. 10, 2015 linked to the common stock of Allergan, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

The principal amount of each note is $115.01, the closing share price of Allergan stock on the pricing date.

The payout at maturity will be either a number of shares of Allergan stock equal to the redemption amount divided by the final share price or the cash equivalent of the redemption amount.

If the final share price is greater than the upside participation threshold, 114.40% of the initial share price, the redemption amount will be par plus 65% times the difference of the final share price minus the upside participation threshold.

If the final share price is less than or equal to the upside participation threshold but greater than or equal to the principal return threshold, 111.5% of the initial price, the redemption amount will be par.

Otherwise, the redemption amount will be the downside exchange ratio times the final price, subject to a minimum redemption amount of $82.52 per note, or 71.75% of par. The downside exchange ratio is equal to the initial price divided by the principal return threshold and is about 0.8968.

Investors will receive less than par at maturity if the stock return is less than 11.5%.

BofA Merrill Lynch is the agent.

Issuer:Bank of America Corp.
Issue:Floored participation notes
Underlying stock:Allergan, Inc. (NYSE: AGN)
Amount:$34,999,843.20
Maturity:Feb. 10, 2015
Coupon:8%, payable monthly
Price:Par of $115.01
Payout at maturity:If final share price is greater than upside participation threshold, par plus 65% times difference of final share price minus upside participation threshold; if final share price is less than or equal to upside participation threshold but greater than or equal to principal return threshold, par; otherwise, downside exchange ratio times final price, subject to a minimum redemption amount of $82.52 per note, or 71.75% of par; payable in cash or stock
Initial price:$115.01
Upside participation threshold:$131.57, 114.4% of initial price
Principal return threshold:$128.24, 111.5% of initial price
Downside exchange ratio:115.01/128.24
Pricing date:Feb. 4
Settlement date:Feb. 11
Agent:BofA Merrill Lynch
Fees:None
Cusip:06053G768

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