Merrill - BAC Step-Up & Biotech

Darrah, John W - NEW YORK NYMinsky, Julie

Rich,

Below are the details on BAC Step-Up note. I know you mentioned you had bought BAC debt in the past. Let me know if this is of interest.

It looks like that agency offering I mentioned on the phone is all gone. Also the only Preferred deal we have now is on waiting list and we need the HY paperwork on file anyways.

We've also seen the biotech industry have a significant pullback from its July 2015 peak. I attached here a research report that has some of our top picks especially within the larger cap end of the spectrum that have strong baseline businesses. Three of those names also will be reporting later stage clinical date in 2016: AMGN, REGN, and VRTX.

PRICE TALK -
Step-Up Note
Coupon
Schedule:

Current Price Range for Step-Up Schedule:

Levels below are indicative given current market interest rates and are subject to final pricing, but will not be less than the "Minimum Coupon Schedule".

The initial coupon will be 3.00%. We currently expect the second coupon to be no less than 3.50%.

Minimum Step-Up Coupon Schedule:

The minimum coupon schedule for this Note is as follows and subject to final pricing:

3.00% until 5/xx/21
at least 3.00% until 5/xx/25
at least 4.00% until 5/xx/28
at least 4.50% until 5/xx30
at least 5.25% until 5/xx/31
If priced at minimum levels, YTM = 3.459%.

Expected

Credit Ratings:

Baal (stable outlook) / BBB+ (stable outlook) / = (stable outlook)

Maturity Date:

5/xx/31

Call Features:

1st Call Date: 5/xx/17

Call Frequency: Semi-annually on each interest payment date.

Distributions:

• 1st Coupon Payment Date: 11/xx/16

• Semi-annually (May and November of each year)

Product Ranking:

Senior Unsecured Notes

Expected Taxation:

Fully taxable as ordinary income

Survivor Option:

NO - This Note does not carry a Survivor option.

Par Amount:

$1000 par

James S. Pollard
Registered Analyst

Team Darrah I Merrill Lynch Wealth Management The Park Avenue Office 200 Park Avenue I 34th Floor I New York I New York 10166

Team Darrah Website

The information set forth herein was from sources, which we believe reliable but we do not guarantee its accuracy neither the information nor an opinion expressed constitutes a solicitation by us of the purchase or sale of any securities or commodities.

The market information contained herein, including, but not limited to, prices, quotes, and statistics, has been obtained from sources that we believe to be reliable, but we do not offer any guarantees as to its accuracy or completeness. Past performance is no guarantee of future results. All information is subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security or other instrument. Merrill Lynch considers your trade confirmations and monthly statements to be the official documentation of all transactions.

Bank of America Corporation (Bank of America) is a financial holding company that, through its subsidiaries and affiliate companies, provides banking and nonbanking financial services.

Merrill Lynch, Pierce, Fenner & Smith Incorporated is a registered broker-dealer, member of SIPC, and wholly owned subsidiary of Bank of America Corporation.

Investment products:

Are not FDIC Insured

Are not Bank Guaranteed

May lose Value

Member Securities Investor Protection Corporation (SIPC).

This message, and any attachments, is for the intended recipient(s) only, may contain information that is privileged, confidential and/or proprietary and subject to important terms and conditions available at http://www.bankofamerica.com/emaildisclaimer. If you are not the intended recipient, please delete this message.

jeffrey E.

please advise
thank you

Richard Kahn
HBRK Associates Inc.
575 Lexington =venue 4th Floor
New York, NY 10022