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

By Susanna Moon

Chicago, June 14 - Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due June 2015 linked to the S&P 500 index, according to an FWP filing with the Securities and Exchange Commission.

If the index closes at or above the initial level on either of two call dates, the notes will be called at par plus a call premium of 10% in June 2013 and par plus 20% in June 2014.

If the notes are not called and the index finishes at or above the 137% to 143% step level, the payout at maturity will be par of $10.00 plus any gain.

If the index gains but finishes below the step level, the payout will be par plus $3.70 to $4.30 per note.

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

Bank of America Merrill Lynch is the underwriter.

The notes will price in June and settle in July.

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