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

By Marisa Wong

Madison, Wis., Oct. 2 - Bank of America Corp. plans to price autocallable market-linked step-up notes due October 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par plus a 9% per year call premium if the index return is zero or positive on two observation dates. The observation dates will be in November 2013 and October 2014.

If the final index level is greater than the step-up value - 128% to 134% of the initial level - the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but not greater than the step-up value, the payout will be par plus the step-up payment of 28% to 34%.

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

The exact terms will be determined at pricing.

The notes are expected to price in October and settle in November.

Bank of America Merrill Lynch will be the agent.

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