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

By Toni Weeks

San Diego, Sept. 13 - Bank of America Corp. plans to price 0% autocallable enhanced 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.

The notes will be automatically called at par plus a 10% premium if the closing level of the S&P 500 index is equal to or greater than the initial level on the observation date in September 2012.

If the index finishes above the step-up value - 115% to 121% 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 threshold value - 90% of 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 15% to 21%.

Investors will lose 1% for every 1% that the index declines beyond 10%.

The notes are expected to price and settle in September.

Bank of America Merrill Lynch is the agent.

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