Bank of America plans market-linked step-up notes tied to three indexes

By Susanna Moon

Chicago, July 14 – Bank of America Corp. plans to price market-linked step-up notes due July 2018 linked to a basket of three equally weighted indexes, according to an FWP filing with the Securities and Exchange Commission.

The underlying components are the S&P 500 index, the MSCI Emerging Markets index and the Euro Stoxx 50 index.

If the basket finishes at or above the step-up value – 112% to 118% of the initial level – the payout at maturity will be par plus the index gain.

If the basket finishes below the step-up level but at or above the threshold level, which will be the initial level, the payout will be par plus the step-up return of 12% to 18%.

The payout at maturity will be par if the basket finishes at or above its 90% trigger level.

Otherwise, investors will be exposed to any losses.

The exact deal terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price and settle in July.

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