EFTA02703202.pdf

From: Richard Kahn Sent: Tuesday, May 3, 2016 5:27 PM To: jeffrey E. Subject: Merrill - BAC Step-Up & Biotech Attachments: 20160503 - BAC Step Up.pdf; Untitled attachment 00039.htm; Biotech Industry Overview.pdt Untitled attachment 00042.htm please advise thank you Richard Kahn HBRK Associates Inc. 575 Lexington =venue 4th Floor New York, NY 10022 Begin forwarded message: From: =/b>"Pollard, James S Subject: =/b>BAC Step-Up & =iotech Date: =/b>May 3, 2016 at 11:43:24 AM =DT To: =/b>"Richard Kahn Cc: "Darrah, John W - NEW YORK NY" , "Minsky, Julie" Rich, Below are the details on = BAC Step-Up note. I know you mentioned you had bought BAC debt in the =ast. Let me know if this is of interest. It looks like that agency offering I mentioned on the phone =s all gone. Also the only Preferred deal we have now is on waiting list =nd we need the HY paperwork on file anyways. EFTA_R1_02078637 EFTA02703202  We've also seen the biotech industry have a =ignificant pullback from its July 2015 peak. I attached here a research =eport that has some of our top picks especially within the larger cap =nd of the spectrum that have strong baseline businesses. Three of those names also will be =eporting 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 =ates and are subject to final pricing, but will not be less than =he "Minimum Coupon Schedule". The initial coupon will be 3.00%. We currently expect the =econd coupon to be no less than 3.50%. • 3.00% until 5/xx/21 • [3.50% - 3.65%) until 5/xx/25 • [4.50%- 4.65%1 until 5/xx/28 • [5.00%- 5.15%1 until 5/xx/30 • [5.75% - 5.90%J until 5/xx/31 • If priced at minimum levels, YTM = 3.753%. 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: 2 EFTA_R1_02078638 EFTA02703203 • 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 =ncome Survivor Option: NO - This Note does not carry a Survivor =ption. 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 =e believe reliable but we do not guarantee its accuracy neither the information nor an opinion expressed constitutes a =olicitation by us of the purchase or sale of any securities or =ommodities. The market information contained =erein, including, but not limited to, prices, quotes, and statistics, =as been obtained from sources that we believe to be reliable, but we do =ot offer any guarantees as to its accuracy or completeness. Past performance is no guarantee of =uture results. All information is subject to change without notice. =either the information nor any opinion expressed constitutes a =olicitation for the purchase or sale of any security or 3 EFTA_R1_02078639 EFTA02703204 other instrument. Merrill Lynch considers your trade confirmations =nd monthly statements to be the official documentation of all =ransactions. Bank of America Corporation (Bank =f America) is a financial holding company that, through its =ubsidiaries and affiliate companies, provides banking and nonbanking =inancial services. Merrill =ynch, Pierce, Fenner & Smith Incorporated is a registered =roker-dealer, member of SIPC, and wholly owned subsidiary of Bank of America Corporation. Investment products: Are =ot FDIC Insured Are =ot Bank Guaranteed May =ose Value ©200= Merrill Lynch, Pierce, Fenner & Smith Incorporated. All rights =eserved. Member =ecurities Investor Protection Corporation (SIPC). This message, and any attachments, is for the intended =ecipient(s) only, may contain information that is privileged, =onfidential and/or proprietary and subject to important terms and =onditions available at http://www.bankofamerica.com/emaildisclaimer. If you =re not the intended recipient, please delete this message. 4 EFTA_R1_02078640 EFTA02703205