New Issue: Bank of America prices $21.21 million step-up notes linked to S&P 500

By Toni Weeks

San Diego, Oct. 31 - Bank of America Corp. priced $21.21 million of 0% market-linked step-up notes due Oct. 23, 2015 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes above the step-up value - 150% of the initial level - the payout at maturity will be par of $10 plus the index return.

If the index finishes at or above the initial level but is less than or equal to the step-up value, the payout at maturity will be par of $10 plus the step-up payment of 50%.

Investors will receive par if the index declines by up to 20% and will be exposed to losses beyond 20%.

Bank of America Merrill Lynch is the agent.

Issuer:	Bank of America Corp.
Issue:	Market-linked step-up notes
Underlying index:	S&P 500
Amount:	$21,207,500
Maturity:	Oct. 23, 2015
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index finishes above 150% of initial level, par plus index return; if index finishes at or above initial level but less than or equal to step-up value, par plus 50%; par for index declines up to 20%; exposure to losses beyond 20%
Initial level:	1,284.59
Step-up value:	1,926.89, 150% of initial level
Threshold value:	1,027.67, 80% of starting value
Pricing date:	Oct. 27
Settlement date:	Nov. 3
Agent:	Bank of America Merrill Lynch
Fees:	2.5%
Cusip:	06051N641

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