Bank of America plans market-linked step-up notes tied to S&P 500

By Marisa Wong

Madison, Wis., Aug. 31 - Bank of America Corp. plans to price 0% market-linked step-up notes due September 2013 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index finishes above the step-up value -113% to 119% of the initial level - the payout at maturity will be par of $10 plus the index gain.

If the index finishes at or above the initial level but below the step-up value, the payout will be par of $10 plus a step-up payment of 13% to 19%. The exact step-up value and step-up payment will be set at pricing.

Investors will receive par if the index falls by 10% or less and will be exposed to any decline beyond 10%.

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

Bank of America Merrill Lynch is the underwriter.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.