New York, July 1 - Bank of America Corp. priced $22.72 million of 0% market-linked step up notes due June 24, 2016 tied to the Russell 2000 Index index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 9% if the index is at or greater than the initial level on either of two annual observation dates.
If the notes are not called and the index finishes above the step-up value - 159.7% of the initial level - the payout at maturity will be par of $10 plus the index return.
If the index finishes at or above the initial level but is less than or equal to the step-up value, the payout will be par of $10 plus the step-up payment of 59.07%.
Investors will receive par if the index falls by up to 5% and will lose 1% for every 1% decline in the index beyond 5%.
BofA Merrill Lynch is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | Market-linked step up notes
|
| Underlying index: | Russell 2000 Index
|
| Amount: | $22,720,330
|
| Maturity: | June 24, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index finishes above step-up value, par plus index return; if index stays flat or gains but finishes equal to or less than step-up value, par plus 59.7%; par if index falls by up to 5%; 1% loss for every 1% decline beyond 5%
|
| Call: | At par plus 9% per year if index finishes at or above initial level on July 7, 2014 or June 19, 2015
|
| Initial index level: | 979.92
|
| Step-up value: | 1,564.93, 159.7% of initial value
|
| Threshold value: | 930.92, 95% of initial value
|
| Pricing date: | June 27
|
| Settlement date: | July 8
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053F141
|
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