Published on 10/11/2012 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $2 million dual range accrual notes on six-month Libor, S&P 500
By Toni Weeks
San Diego, Oct. 11 - Bank of America Corp. priced $2 million of autocallable dual range accrual notes due Oct. 12, 2027 linked to six-month Libor and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The interest rate is the base rate multiplied by the proportion of days on which six-month Libor is 8% or less and the S&P 500 closes at or above 1,081.11. The base rate is 5% in years one through 10, 6% in year 11, 7% in year 12, 8% in year 13, 9% in year 14 and 10% in year 15. Interest is payable quarterly.
Beginning Oct. 12, 2013, the notes will be automatically called at par on any interest payment date if the index closes above the call reference level of 2,018.07, which is 140% of the initial index level.
If the notes are not called, investors will receive par at maturity.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable dual range accrual notes
|
| Underlyings: | Six-month Libor and S&P 500 index
|
| Amount: | $2 million
|
| Maturity: | Oct. 12, 2027
|
| Coupon: | Base rate multiplied by proportion of days on which six-month Libor is 8% or less and S&P 500 closes at or above 1,081.11; payable quarterly
|
| Base rate: | 5% in years one through 10, 6% in year 11, 7% in year 12, 8% in year 13, 9% in year 14 and 10% in year 15
|
| Price: | Varying prices
|
| Payout at maturity: | Par
|
| Index strike level: | 1,081.11
|
| Initial level: | 1,441.48
|
| Call reference level: | 2,018.07, 140% of initial level
|
| Call: | At par on any interest payment date beginning Oct. 12, 2013 if index closes above call reference level
|
| Pricing date: | Oct. 9
|
| Settlement date: | Oct. 12
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | Agent purchased notes at 95.75
|
| Cusip: | 06048WNF3
|
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