By Marisa Wong
Madison, Wis., Feb. 18 - Bank of America Corp. priced $34.76 million of 9.5% STEP Income Securities due Feb. 27, 2015 tied to Valero Energy Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If the final share price is greater than or equal to the step level, 109.5% of the initial price, the payout at maturity will be par of $10 plus the step payment of $0.64.
If the final share price is less than the step level but greater than or equal to the initial price, the payout will be par.
Otherwise, investors will be fully exposed to losses.
Merrill Lynch & Co. is the underwriter.
| Issuer: | Bank of America Corp.
|
| Issue: | STEP Income Securities
|
| Underlying stock: | Valero Energy Corp.
|
| Amount: | $34,764,920.
|
| Maturity: | Feb. 27, 2015
|
| Coupon: | 9.5%, payable quarterly
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to step level, par plus $0.64; if final share price is less than step level but greater than or equal to initial price, par; otherwise, investors will be fully exposed to losses
|
| Initial price: | $48.47
|
| Step level: | $53.07, 109.5% of initial price
|
| Pricing date: | Feb. 13
|
| Settlement date: | Feb. 21
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 1.75%
|
| Cusip: | 06053G743
|
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