Bank of America plans market-linked step-up autocalls on S&P Oil & Gas

By Susanna Moon

Chicago, March 4 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due March 2017 tied to the S&P Oil & Gas Exploration and Production Select Industry index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 12% to 14%% if the index closes at or above the initial level on the call observation date in April 2016.

If the index finishes above the step-up level – 130% of the initial value – the payout at maturity will be par plus the index return.

If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.

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

BofA Merrill Lynch is the underwriter.

The notes will price in March and settle in April.

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