Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
July 20 2016 - 2:03PM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration No. 333-202354
LEVERAGED INDEX RETURN NOTES
®
(LIRNs
®
)
|
LIRNs
®
Linked to a
n
International 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
n
international equity
index
basket comprised of
the
EURO STOXX 50
®
Index (Bloomberg symbol: SX5E),
the
FTSE
®
100 Index (Bloomberg symbol: UKX),
the
Nikkei Stock Average Index (Bloomberg symbol: NKY),
the
Swiss Market Index (Bloomberg symbol: SMI),
the
S&P/ASX 200 Index (Bloomberg symbol: AS51) and
the
Hang Seng
®
Index (Bloomberg symbol: HSI). The EURO STOXX 50
®
Index will be given an initial weight of 40%, each of the FTSE
®
100 Index and the Nikkei Stock Average Index will be given an initial weight of 20%, each of the Swiss Market Index and the S&P/ASX 200 Index will be given an initial weight of 7.5
0
% and the Hang Seng
®
Index will be given an initial weight of 5%
|
Payout Profile at Maturity
|
●
[135% to 155%] participation in increases in the Market Measure
●
1-to-1 downside exposure to decreases in the Market Measure, with 100% of your investment at risk
|
Participation Rate
|
[135% to 155%], to be determined on the pricing date.
|
Threshold Value
|
100% of the Starting Value of the Market Measure
|
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.
|
●
|
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 may be affected by factors affecting the international securities markets, specifically changes in the countries represented by the Basket Components. In addition, you will not obtain the benefit of any increase in the value of the currencies in which the securities in the Basket Components trade against the U.S. dollar which you would have received if you had owned the securities in the Basket Components during the term of your notes, although the value of the Basket may be adversely affected by general exchange rate movements in the market.
|
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 (wh
ich 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
Ind
ex 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-
8
00
-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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