Published on 3/25/2013 in the Prospect News Structured Products Daily.
New Issue: Bank of America prices $6.63 million step-up notes linked to 23 stocks
By Angela McDaniels
Tacoma, Wash., March 25 - Bank of America Corp. priced $6.63 million of 0% market-linked step-up notes due March 28, 2016 linked to a basket of 23 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes equal weights of Abbott Laboratories, AbbVie Inc., Actavis, Inc., Amazon.com, Inc., Apple Inc., Celgene Corp., Coca-Cola Co., Colgate-Palmolive Co., Eastman Chemical Co., Eli Lilly and Co., Exxon Mobil Corp., Hershey Co., Intel Corp., International Business Machines Corp., Johnson & Johnson, Marathon Oil Corp., Merck & Co., Inc. National Oilwell Varco, Inc., Novo Nordisk AS, Philip Morris International Inc., Procter & Gamble Co., Qualcomm Inc. and Starbucks Corp.
The notes will be automatically called at par plus an annualized call premium of 8.5% if the basket's closing level is greater than or equal to the initial index level on March 31, 2014 or March 27, 2015.
If the notes are not called and the basket's final level is greater than the step-up value, the payout at maturity will be par of $10 plus the basket return. The step-up value is 129.1% of the initial index level.
If the final basket level is greater than or equal to the initial index level but less than the step-up value, the payout will be par plus 29.1%.
If the final basket level is less than the initial level, investors will be fully exposed to the basket's decline.
BofA Merrill Lynch is the agent.
| Issuer: | Bank of America Corp.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying stocks: | Abbott Laboratories, AbbVie Inc., Actavis, Inc., Amazon.com, Inc., Apple Inc., Celgene Corp., Coca-Cola Co., Colgate-Palmolive Co., Eastman Chemical Co., Eli Lilly and Co., Exxon Mobil Corp., Hershey Co., Intel Corp., International Business Machines Corp., Johnson & Johnson, Marathon Oil Corp., Merck & Co., Inc. National Oilwell Varco, Inc., Novo Nordisk AS, Philip Morris International Inc., Procter & Gamble Co., Qualcomm Inc. and Starbucks Corp., equally weighted
|
| Amount: | $6,627,000
|
| Maturity: | March 28, 2016
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket's final level is greater than step-up value, par plus basket return; if final basket level is greater than or equal to initial index level but less than step-up value, par plus 29.1%; full exposure to any basket decline
|
| Call: | Automatically if basket's closing level is greater than or equal to initial index level on either of two observation dates; payout will be $10.85 per note if called March 31, 2014 and $11.70 per note if called March 27, 2015
|
| Pricing date: | March 20
|
| Settlement date: | April 5
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 06053E565
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
