Bank of America to price autocallable step-up notes linked to stocks

By Angela McDaniels

Tacoma, Wash., June 23 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due June 2017 linked to the worst of the common stocks of Citigroup, Inc., JPMorgan Chase & Co. and Wells Fargo & Co., according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called if each stock closes at or above its initial share price on either observation date, which will fall sometime in June 2015 and June 2016. The payout will be $12.20 per $10.00 principal amount of notes if the notes are called in June 2015 or $14.40 if they are called in June 2016.

If the notes are not called and the final share price of the worst-performing stock is greater than its step-up value, the payout at maturity will be par plus the return of that stock. The step-up value is expected to be 140% to 146% of the initial share price.

If the final share price of the worst-performing stock is greater than or equal to its initial share price but less than or equal to its step-up value, the payout will be par plus the step-up payment, which is expected to be 40% to 46%.

If the final share price of the worst-performing stock is less than its initial share price, investors will have one-to-one exposure to the decline of that stock.

The exact terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes are expected to price in June and settle in July.

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