Bank of America plans autocallables linked to S&P 500, oil & gas ETF

By Angela McDaniels

Tacoma, Wash., Sept. 3 – Bank of America Corp. plans to price 0% autocallable notes due Sept. 25, 2019 linked to the lesser performing of the S&P 500 index and the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a call premium if each underlying component closes at or above its initial level on Sept. 19, 2016, Sept. 18, 2017, Sept. 18, 2018 or Sept. 18, 2019. The call premium is expected to be 18% to 22% per year and will be set at pricing.

If the notes are not called and the final level of each underlying component is greater than its downside threshold level, 70% of its initial level, the payout at maturity will be par plus 10%. Otherwise, investors will be fully exposed to the decline of the lesser-performing underlying component.

BofA Merrill Lynch is the agent.

The notes will settle Sept. 25.

The Cusip number is 06048WRN2.

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