Bank of America plans step-up autocallables linked to three stocks

By Angela McDaniels

Tacoma, Wash., Nov. 6 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due November 2018 linked to the common stocks of Barracuda Networks, Inc., FireEye, Inc. and Fortinet, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

FireEye has a 33.34% weight in the basket, and the other two stocks each have a 33.33% weight.

The notes will be automatically called if the basket closes at or above the initial basket level on either of the observation dates, which will fall in December 2016 and November 2017. The redemption amount will be $11.45 per $10.00 principal amount of notes for the first call observation date and $12.90 for the second.

If the notes are not called and the final basket level is greater than the step-up value, 140% to 146% of the initial basket level, the payout at maturity will be par plus the basket return.

If the final basket level is greater than or equal to the initial level but less than or equal to the step-up value, the payout will be par plus the step-up payment, 40% to 46%.

If the final basket level is less than the initial level by up to 10%, the payout will be par.

If the final basket level is less than the initial level by more than 10%, investors will lose 1% for every 1% decline beyond 10%.

The exact step-up value and step-up payment will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price and settle in November.

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