Bank of America plans autocallable market-linked step-up notes on S&P

By Jennifer Chiou

New York, Oct. 17 - Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due October 2015 linked to the S&P 500 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 $0.85 if the notes are called in October 2013 or $1.70 if the notes are called in October 2014.

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 20% to 26% and will be set at pricing. Investors will receive par if the index declines by 5% or less and will lose 1% for every 1% that it declines beyond 5%.

The notes will price in October and settle in November.

Bank of America Merrill Lynch is the underwriter.

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