Capped LIRNs® Linked to a Global Equity Index Basket | This graph reflects the hypothetical return on the notes, based on the mid-point of the range(s) set forth in the table to the left. This graph has been prepared for purposes of illustration only. | |
Issuer | Bank of America Corporation (BAC) | |
Principal Amount | $10.00 per unit | |
Term | Approximately two years | |
Market Measure | A global equity index basket comprised of the S&P 500® Index (Bloomberg symbol: SPX), the MSCI EAFE® Index (Bloomberg symbol: MXEA) and the MSCI Emerging Markets Index (Bloomberg symbol: MXEF). The S&P 500® Index will be given an initial weight of 45% and each of the MSCI EAFE® Index and the MSCI Emerging Markets Index will be given an initial weight of 27.50% | |
Payout Profile at Maturity | ● 2-to-1 upside exposure to increases in the Market Measure, subject to the Capped Value ● 1-to-1 downside exposure to decreases in the Market Measure beyond a 10% decline, with up to 90% of your principal at risk | |
Capped Value | [$11.50 to $11.90] per unit, a [15% to 19%] return over the principal amount, to be determined on the pricing date. | |
Threshold Value | 90% of the Starting Value | |
Interest Payments | None | |
Preliminary Offering Documents | ||
Exchange Listing | No |
● | Depending on the performance of the Market Measure 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 Capped Value and may be less than a comparable investment directly in the stocks included in the Basket Components. |
● | Changes in the level of one of the Basket Components may be offset by changes in the levels of the other Basket Components. |
● | 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 securities included in the Basket Components, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities. |
● | Your return on the notes and the value of the notes may be affected by exchange rate movements and factors affecting the international securities markets |