By Angela McDaniels
Tacoma, Wash., Jan. 28 - Bank of America Corp. priced $69.13 million of 0% autocallable market-linked step-up notes due Jan. 25, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus a call premium if the index closes at or above the initial index level on either of two observation dates. The call premium is 8.5% if the notes are called on Jan. 28, 2014 or 17% if they are called on Jan. 16, 2015.
If the final index level is greater than the step-up value -120% of the initial level - the payout at maturity will be par plus the index return.
If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment of 20%.
Investors will receive par if the index declines by up to 5% and will lose 1% for every 1% that the index declines beyond 5%.
Bank of America Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: S&P 500
|
| Amount: | $69,125,620
|
| Maturity: | Jan. 25, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is greater than step-up value, par plus index return; if final index level is greater than or equal to initial level but less than or equal to step-up value, par plus step-up payment of 20%; par if index falls by up to 5%; 1% loss for every 1% that index declines beyond 5%
|
| Call: | Automatically at par plus call premium if index closes at or above initial level on Jan. 28, 2014 or Jan. 16, 2015; call premium is 8.5% for first call date or 17% for second call date
|
| Initial index level: 1,494.82
|
| Step-up value: | 1,793.78, 120% of initial index level
|
| Threshold value: | 1,420.08, 95% of initial index level
|
| Pricing date: | Jan. 24
|
| Settlement date: | Feb. 4
|
| Agent: | Bank of America Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053E276
|
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