Bank of America plans 10% to 12% autocallables linked to Facebook

By Angela McDaniels

Tacoma, Wash., Nov. 13 – Bank of America Corp. plans to price autocallable coupon-bearing notes due December 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate is expected to be 10% to 12% per year. Interest will be payable quarterly.

The notes will be automatically called at par of $10 if Facebook stock closes at or above the call level, 100% of the initial share price, on either observation date, which will fall in May 2016 and August 2016.

If the notes are not called and the final share price is greater than or equal to the initial share price, the payout at maturity will be par. Otherwise, investors will be fully exposed to the stock’s decline.

BofA Merrill Lynch is the agent.

The notes will price in November and settle in December.

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