Bank of America plans autocallable step-up notes tied to S&P Oil & Gas

By Angela McDaniels

Tacoma, Wash., June 30 – Bank of America Corp. plans to price 0% autocallable market-linked step-up notes due July 2016 linked to the S&P Oil & Gas Exploration and Production Select Industry index, according to an FWP filing with the Securities and Exchange Commission.

The notes will be automatically called at par of $10 plus 10% if the index closes at or above the initial index level on the observation date, which will fall sometime in July 2015.

If the notes are not called and the final index level is greater than the step-up value, 120% to 126% initial level, then the payout at maturity will be par plus the index return.

If the final index level is greater than or equal to the initial level but less than or equal to the step-up value, then the payout will be par plus the step-up payment, which is expected to be 20% to 26%.

If the final index level is less than the initial index level, investors will have one-to-one exposure to the decline.

The exact terms will be set at pricing.

BofA Merrill Lynch is the agent.

The notes will price and settle in July.

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