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

By Angela McDaniels

Tacoma, Wash., Feb. 24 - Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due March 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 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 $1 if the notes are called in March 2013 or $2 if the notes are called in March 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 27% to 33% 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 and settle in March.

Bank of America Merrill Lynch is the underwriter.

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