Bank of America to price autocallable enhanced step-up notes with buffer linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Nov. 29 - Bank of America Corp. plans to price 0% autocallable enhanced market-linked step-up notes with buffer due December 2013 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus 10% if the index closes at or above the initial index level on the observation date, which will occur about one year after the pricing date.

If the notes are not called and the final index level is greater than the step-up value, the payout at maturity will be par plus the index return. The step-up value will be 132% to 138% of the initial index level.

If the final index level is less than or equal to the step-up value and greater than or equal to 90% of the initial index level, the payout will be par plus the step-up payment, which is expected to be 32% to 38%.

Investors will lose 1% for every 1% that the index declines beyond 10%.

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

The notes will price and settle in January.

Bank of America Merrill Lynch is the underwriter.

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