Bank of America plans market-linked step-up autocallables on S&P 500

By Susanna Moon

Chicago, July 30 - Bank of America Corp. plans to price autocallable market-linked step-up notes due August 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be called at a premium of 10% per year if the index closes at or above the call level in August 2013 or August 2014.

If the index finishes above the step-up value - 130% to 136% of the initial level - the payout at maturity will be par plus the index gain.

If the index gains but stays at or below the step-up value, the payout will be par plus the step-up payment of 30% to 36%.

Investors will receive par if the index falls by up to 5% and will be exposed to any losses beyond 5%.

Bank of America Merrill Lynch will be the agent.

The notes are expected to price and settle in August.

The exact deal terms will be set at pricing.

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