Accelerated Return Notes® Linked to a Basket of Three Defense Industry Stocks | 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 14 months | |
Market Measure | An approximately equally weighted basket of three defense industry stocks comprised of General Dynamics Corporation (Bloomberg symbol: GD), Lockheed Martin Corporation (Bloomberg symbol: LMT) and Raytheon Company (Bloomberg symbol: RTN) (each, a Basket Stock). | |
Payout Profile at Maturity | ● 3-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, with 100% of your investment at risk | |
Capped Value | [$11.20 to $11.60] per unit, a [12% to 16%] return over the principal amount, to be determined on the pricing date. | |
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 Basket Stocks. |
● | Changes in the price of one of the Basket Stocks may be offset by changes in the prices of the other Basket Stocks. |
● | 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 Basket Stocks, and you will not be entitled to receive shares of the Basket Stocks or dividends or other distributions by the issuers of the Basket Stocks. |
● | We do not control any company included in the Basket and have not verified any disclosure made by any other company. The companies included in the Basket will have no obligations relating to the notes. |
● | The Redemption Amount will not be adjusted for all corporate events that could affect the Basket Stocks. |
● | The Basket is concentrated in the defense industry; an investment in the notes involves certain risks associated with an investment in companies in the defense industry. |