Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
April 29 2016 - 4:50PM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration No. 333-202354
STRATEGIC ACCELERATED REDEMPTION SECURITIES
®
|
Strategic Accelerated Redemption Securities
®
Linked to the S&P 500
®
Index
|
Issuer
|
Bank of America Corporation (
BAC
)
|
Principal Amount
|
$10.00 per unit
|
Term
|
Approximately one year and one week, if not called on the first or second Observation Dates
|
Market Measure
|
S&P 500
®
Index (Bloomberg symbol: SPX)
|
Automatic Call
|
Automatic call if the Observation Level of the Market Measure on any of the Observation Dates is equal to or greater than the starting value
|
Observation Level
|
The closing level of the Market Measure on any Observation Date
|
Observation Dates
|
Approximately six, nine, and twelve months after the pricing date
|
Call Premium
|
In the event of an automatic call, the a
mount payable per unit will be
:
[$10.350 to $10.550] if called on the first Observation Date
[$10.525 to $10.825] if called on the second Observation Date
[$10.700 to $11.100] if called on the final Observation Date
|
Payout Profile
at Maturity
|
If not called, 1-to-1 downside exposure to decreases in the Market Measure, with up to 100% of your principal at risk
|
Interest Payments
|
None
|
Preliminary Offering Documents
|
|
Exchange
Listing
|
No
|
You should read the relevant
Preliminary Offering Documents
before you invest.
Click on the Preliminary Offering Documents hyperlink above or call your Financial Advisor for a hard copy.
Risk Factors
Please see the
Preliminary Offering Documents
for a description of certain risks related to this investment, including, but not limited to, the following:
●
|
If the notes are not
automatically
called, your investment
will
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 applicable Call Premium and may be less than a comparable investment directly in the stocks included in the Market Measure.
|
●
|
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 represented by the Market Measure, and you will not be entitled to receive securities or dividends or other distributions by the issuers of those securities.
|
Final terms will be set on the pricing date within the given range
for the specified Market-Linked Investment. Please see the
Preliminary Offering Documents
for complete product disclosure, including r
elated risks and tax disclosure
.
Bank of America Corporation (BAC) has
filed a registration statement (which includes a prospectus) with the Securities
and Exchange Commission (SEC) for the notes that are described in this
Guidebook. Before you invest, you should carefully read the prospectus in that
registration statement and other documents that BAC has filed with the SEC for
more complete information about BAC and any offering described in this
Guidebook. You may obtain these documents without cost by visiting EDGAR on the
SEC Website at www.sec.gov. BACs Central Index Key, or CIK, on the SEC website
is 70858. Alternatively, Merrill Lynch will arrange to send you the prospectus
and other documents relating to any offering described in this document if you
so request by calling toll-free 1-800-294-1322. BAC faces risks that are
specific to its business, and we encourage you to carefully consider these risks
before making an investment in its securities.
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