By Marisa Wong
Madison, Wis., July 29 - Bank of America Corp. priced $26.3 million of 0% market-linked step-up notes due July 22, 2016 tied to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium if the index's closing level is greater than or equal to the initial level on either observation date. The premium will be $1.00 if the notes are called on Aug. 8, 2014 or $2.00 if the notes are called on July 17, 2015.
If the index finishes above the step-up value - 122.4% of the initial value - the payout at maturity will be par plus the index return.
If the index return is zero or positive but the index finishes at or below the step-up value, the payout will be par plus the step-up payment of 22.4%.
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
|
| Amount: | $26,300,030
|
| Maturity: | July 22, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus index return; if index stays flat or gains but finishes at or below step-up value, par plus 22.4%; par if index falls by up to 5%; 1% loss for every 1% decline beyond 5%
|
| Call: | Automatically at par plus a premium if index closes at or above initial level on either observation date; premium is 10% if notes are called on Aug. 8, 2014 or 20% if called on July 17, 2015
|
| Initial index level: | 1,054.18
|
| Step-up value: | 1,290.32, 122.4% of initial value
|
| Threshold value: | 1,001.47, 95% of initial value
|
| Pricing date: | July 25
|
| Settlement date: | Aug. 1
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053F232
|
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