Bank of America plans autocallable step-up notes tied to Russell 2000

By Jennifer Chiou

New York, April 30 - Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due May 2017 linked to the Russell 2000 index, according to an FWP with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a premium if the index's closing level is greater than or equal to the initial level on either observation date. The premium will be 8% if the notes are called in May 2015 or 16% if the notes are called in May 2016.

If the notes are not called and the final index level is greater than or equal to the initial index level, the payout at maturity will be par plus the greater of the step-up payment and the index return. The step-up payment is expected to be 16% to 22% and will be set at pricing.

Investors will receive par for losses up to 5% and will share in any losses beyond 5%.

The notes will price and settle in May.

BofA Merrill Lynch is the underwriter.

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