Coupon Bearing Notes Linked to the Common Stock of Microsoft Corporation | |
Issuer | Bank of America Corporation (BAC) |
Principal Amount | $10.00 per unit |
Underlying Stock | Common Stock of Microsoft Corporation (the Underlying Company) (NASDAQ symbol: MSFT) |
Term | Approximately one year and one week |
Interest Payments | [6.00% to 7.00%] per annum, paid quarterly |
Payout Profile at Maturity | ● No participation in any increase in the price of the Underlying Stock, and the Redemption Amount at maturity will not exceed the principal amount per unit ● 1-to-1 downside exposure to decreases in the Underlying Stock beyond a 5.00% decline, with up to 95.00% of your principal at risk |
Threshold Value | 95.00% of the Starting Value of the Underlying Stock |
Preliminary Offering Documents | |
Exchange Listing | No |
● | Depending on the performance of the Underlying Stock as measured shortly before the maturity date, your investment may result in a loss; there is no guaranteed return of principal. |
● | Payments on the notes are subject to the credit risk of BAC, and actual or perceived changes in the creditworthiness of BAC are expected to affect the value of the notes. If BAC becomes insolvent or is unable to pay its obligations, you may lose your entire investment. |
● | Your investment return is limited to the return represented by the periodic interest payments over the term of the notes, and may be less than a comparable investment directly in the Underlying Stock. |
● | The initial estimated value of the notes on the pricing date will be less than their public offering price. |
● | If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and the initial estimated value of the notes on the pricing date. |
● | You will have no rights of a holder of the Underlying Stock, and you will not be entitled to receive any shares of the Underlying Stock or dividends or other distributions by the Underlying Company. |
● | The issuer, MLPF&S and their respective affiliates do not control the Underlying Company and are not responsible for any disclosure made by the Underlying Company. The Underlying Company will have no obligations relating to the notes. |
● | The payments on the notes will not be adjusted for all corporate events that could affect the Underlying Stock. |