Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
August 23 2016 - 6:05AM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration No. 333-202354
ACCELERATED RETURN NOTES
®
(ARNs
®
)
|
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
|
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:
●
|
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
.
|
Final terms will be set on the pricing date within the given range for the specified Market-Linked Investment. Please see the
Preliminary Offering D
ocuments
for complete product disclosure, including related 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. BAC’s Central Index Key, or ClK, 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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